<SEC-DOCUMENT>0001157523-17-001250.txt : 20170427
<SEC-HEADER>0001157523-17-001250.hdr.sgml : 20170427
<ACCEPTANCE-DATETIME>20170427160839
ACCESSION NUMBER:		0001157523-17-001250
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170427
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170427
DATE AS OF CHANGE:		20170427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			POWER INTEGRATIONS INC
		CENTRAL INDEX KEY:			0000833640
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				943065014
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23441
		FILM NUMBER:		17789112

	BUSINESS ADDRESS:	
		STREET 1:		5245 HELLYER AVE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95138
		BUSINESS PHONE:		4084149200

	MAIL ADDRESS:	
		STREET 1:		5245 HELLYER AVE
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95138
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51549252.htm
<DESCRIPTION>POWER INTEGRATIONS, INC. 8-K
<TEXT>
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      <font style="font-size: 16pt; font-family: Times New Roman"><b>UNITED
      STATES</b></font><b><font style="font-size: 16pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 16pt"></font><font style="font-size: 16pt; font-family: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></b><font style="font-size: 16pt"><br style="font-size: 16pt"></font><font style="font-size: 16pt; font-family: Times New Roman"><b>WASHINGTON,
      DC 20549</b></font><br><font style="font-family: Times New Roman"><b>______________</b></font><br>
    </p>
    <p style="text-align: center">
      <font style="font-size: 16pt; font-family: Times New Roman"><b>FORM 8-K</b></font><br><br><br><font style="font-size: 12pt; font-family: Times New Roman"><b>CURRENT
      REPORT</b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>PURSUANT
      TO SECTION 13 OR 15(d) OF</b></font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt; font-family: Times New Roman"><b>THE
      SECURITIES EXCHANGE ACT OF 1934</b></font><br><br><font style="font-size: 10pt; font-family: Times New Roman">Date
      of Report (Date of earliest event reported): </font><font style="font-size: 10pt; font-family: Times New Roman"><b>April
      27, 2017</b></font><font style="font-size: 10pt; font-family: Times New Roman"><br style="font-family: Times New Roman; font-size: 10pt"></font><br><font style="font-family: Times New Roman"><b>______________</b></font><br>
    </p>
    <p style="text-align: center">
      <font style="font-size: 18pt; font-family: Times New Roman"><b>Power
      Integrations, Inc.</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Exact
      name of Registrant as specified in its charter)</font><br><font style="font-family: Times New Roman"><b>______________</b></font><br>
    </p>
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    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
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          <p style="margin-bottom: 0px; margin-top: 0px">
            Delaware
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          &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            000-23441
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          &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            94-3065014
          </p>
        </td>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction
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          <p style="margin-bottom: 0px; margin-top: 0px">
            of incorporation)
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        </td>
        <td style="width: 3%">

        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 32%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Commission
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            File Number)
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 31%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (IRS Employer
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <b>5245 Hellyer Avenue</b><br><b>San Jose, California 95138-1002</b><br><b>(Address
      of principal executive offices)</b><br><br><b>(408)&#160;414-9200</b><br>&#160;(Registrant&#8217;s
      telephone number, including area code)
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman"><b>______________</b></font><br>
    </p>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions </font>(see General Instruction A.2. below):
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

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      </div>
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        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>Item 2.02. Results of Operations and Financial Condition.</b>
    </p>
    <p>
      On April 27, 2017 the Registrant issued a press release, a copy of which
      is attached hereto as Exhibit 99.1 and is incorporated herein by
      reference.
    </p>
    <p>
      <b>Item 9.01. Financial Statements and Exhibits.</b>
    </p>
    <p style="margin-left: 30.0px">
      Exhibit 99.1. &#160; &#160; &#160; Press release dated April 27, 2017
    </p>
    <p>

    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURE</b></font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">&#160;&#160;&#160;Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended,
      the Registrant has duly caused this report to be signed on its behalf by
      the undersigned hereunto duly authorized.</font>
    </p>
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            &#160;
          </p>
        </td>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Power Integrations</b>
          </p>
        </td>
      </tr>
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        <td style="width: 48%">

        </td>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 48%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Registrant)
          </p>
        </td>
      </tr>
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        <td style="width: 48%">

        </td>
        <td style="width: 4%">

        </td>
        <td style="width: 48%">
          &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>April 27, 2017</b>
          </p>
        </td>
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          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
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          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>/s/ SANDEEP&#160;NAYYAR</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 48%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (Date)
          </p>
        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 48%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Sandeep Nayyar
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 48%">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 48%; text-align: center">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <i>Chief Financial Officer</i>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51549252ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt; font-family: Times New Roman"><b>Power
      Integrations Reports First-Quarter Financial Results</b></font>
    </p>
    <p style="text-align: center">
      <i><font style="font-size: 12pt; font-family: Times New Roman"><b>Revenues
      grew 19 percent year-over-year to $104.7 million; GAAP earnings were
      $0.47 per diluted share; non-GAAP earnings were $0.63 per diluted share</b></font></i>
    </p>
    <p>
      SAN JOSE, Calif.--(BUSINESS WIRE)--April 27, 2017--Power Integrations
      (Nasdaq:POWI) today announced financial results for the quarter ended
      March 31, 2017. Results are calculated using the &#8220;sell-in&#8221; method of
      revenue recognition on sales to distributors, reflecting the company&#8217;s
      adoption of ASC 606 effective January 1, 2017. Prior-period results have
      been recast as if ASC 606 had been in effect for those periods.
    </p>
    <p>
      Net revenues for the first quarter were $104.7 million, an increase of
      two percent from the prior quarter, and an increase of 19 percent from
      the first quarter of 2016. Net income was $14.1 million or $0.47 per
      diluted share, compared to $0.48 per diluted share in the prior quarter
      and $0.35 per diluted share in the first quarter of 2016.
    </p>
    <p>
      In addition to its GAAP results, the company provided certain non-GAAP
      financial measures that exclude stock-based compensation expenses,
      amortization of intangible assets and the tax effects of these items.
      Non-GAAP net income for the first quarter was $19.1 million or $0.63 per
      diluted share, compared with $0.70 per diluted share in the prior
      quarter and $0.55 per diluted share in the first quarter of 2016.
    </p>
    <p>
      Commented Balu Balakrishnan, president and CEO of Power Integrations:
      &#8220;We are off to a strong start in 2017 with 19 percent revenue growth in
      the first quarter. Our growth is being fueled by innovative products
      such as our InnoSwitch&#8482; ICs, and by multi-year secular trends such as
      energy-efficiency, faster charging for mobile devices, smarter homes and
      appliances, LED lighting, renewable energy, and the growing use of
      battery power in transportation, power tools and other applications. We
      also have a robust pipeline of new products coming to market over the
      next several quarters, which we believe will further enhance our
      competitive positioning and expand our addressable market.&#8221;
    </p>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
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        <div style="text-align: center">

        </div>
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          <hr style="color: black; height: 1.5pt">

        </div>
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        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Additional Highlights</b>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Power Integrations paid a dividend of $0.14 per share on March 31,
        2017. A dividend of $0.14 per share is scheduled to be paid on June
        30, 2017, to stockholders of record as of May 31, 2017.
      </li>
      <li style="margin-bottom: 10.0px">
        Power Integrations was issued 13 U.S. patents during the first quarter
        of 2017.
      </li>
    </ul>
    <p>
      <b>Financial Outlook</b>
    </p>
    <p>
      The company issued the following forecast for the second quarter of 2017:
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Revenues are expected to be $107 million plus or minus $3 million.
      </li>
      <li style="margin-bottom: 10.0px">
        GAAP gross margin is expected to be between 48.8 percent and 49.3
        percent; non-GAAP gross margin is expected to be between 50 percent
        and 50.5 percent. (The difference between the expected GAAP and
        non-GAAP gross margins is composed of approximately 0.9 percentage
        points from amortization of acquisition-related intangible assets and
        0.3 percentage points from stock-based compensation.)
      </li>
      <li style="margin-bottom: 10.0px">
        GAAP operating expenses are expected to be approximately $39 million;
        non-GAAP operating expenses are expected to be approximately $33.5
        million. (Non-GAAP expenses are expected to exclude approximately $5
        million of stock-based compensation expenses and $0.5 million of
        amortization of acquisition-related intangible assets.)
      </li>
    </ul>
    <p>
      <b>Conference Call Today at 1:30 p.m. Pacific Time</b>
    </p>
    <p>
      Power Integrations management will hold a conference call today at 1:30
      p.m. Pacific time. Members of the investment community can join the call
      by dialing 1-647-788-4901. The call will also be available on the
      investor section of the company's website, <u><i>http://investors.power.com</i></u>.
    </p>
    <p>
      <b>About Power Integrations</b>
    </p>
    <p>
      Power Integrations, Inc. is a leading innovator in semiconductor
      technologies for high-voltage power-conversion. The company&#8217;s products
      are key building blocks in the clean-power ecosystem, enabling the
      generation of renewable energy as well as the efficient transmission and
      consumption of power in applications ranging from milliwatts to
      megawatts. For more information please visit <u><i>www.power.com</i></u>.
    </p>
    <p>
      <b>Note Regarding Use of Non-GAAP Financial Measures</b>
    </p>
    <p>
      In addition to the company's consolidated financial statements, which
      are presented according to GAAP, the company provides certain non-GAAP
      financial information that excludes stock-based compensation expenses
      recorded under ASC 718-10, amortization of acquisition-related
      intangible assets (including in-place lease intangible assets) and the
      tax effects of these items. The company uses these measures in its
      financial and operational decision-making and, with respect to one
      measure, in setting performance targets for compensation purposes. The
      company believes that these non-GAAP measures offer important analytical
      tools to help investors understand its operating results, and to
      facilitate comparability with the results of companies that provide
      similar measures. These non-GAAP measures have limitations as analytical
      tools and are not meant to be considered in isolation or as a substitute
      for GAAP financial information. For example, stock-based compensation is
      an important component of the company&#8217;s compensation mix, and will
      continue to result in significant expenses in the company&#8217;s GAAP results
      for the foreseeable future, but is not reflected in the non-GAAP
      measures. Also, other companies, including companies in Power
      Integrations&#8217; industry, may calculate non-GAAP measures differently,
      limiting their usefulness as comparative measures.
    </p>
    <p>
      <b>Note Regarding Forward-Looking Statements</b>
    </p>
    <p>
      The statements in this press release regarding the company&#8217;s forecast
      for its second-quarter financial performance, and regarding the
      company&#8217;s belief that its pipeline of new products coming to market over
      the next several quarters will further enhance its competitive
      positioning and expand its addressable market, are forward-looking
      statements reflecting management's current expectations and beliefs.
      These forward-looking statements are based on current information that
      is, by its nature, subject to rapid and even abrupt change. Due to risks
      and uncertainties associated with the company's business, actual results
      could differ materially from those projected or implied by these
      statements. These risks and uncertainties include, but are not limited
      to: changes in global macroeconomic conditions, which may impact the
      level of demand for the company&#8217;s products; potential changes and shifts
      in customer demand away from end products that utilize the company's
      integrated circuits to end products that do not incorporate the
      company's products; the effects of competition, which may cause the
      company to decrease its selling prices for its products; the outcome and
      cost of patent litigation, which may affect sales of the company&#8217;s
      products or could result in higher expenses and charges than currently
      expected; unforeseen costs and expenses; and unfavorable fluctuations in
      component costs or operating expenses resulting from changes in
      commodity prices and/or exchange rates. In addition, new product
      introductions and design wins are subject to the risks and uncertainties
      that typically accompany development and delivery of complex
      technologies to the marketplace, including product development delays
      and defects and market acceptance of the new products. These and other
      risk factors that may cause actual results to differ are more fully
      explained under the caption &#8220;Risk Factors&#8221; in the company's most recent
      Annual Report on Form 10-K, filed with the Securities and Exchange
      Commission (SEC) on February 8, 2017. The company is under no obligation
      (and expressly disclaims any obligation) to update or alter its
      forward-looking statements, whether as a result of new information,
      future events or otherwise, except as otherwise required by the rules
      and regulations of the SEC.
    </p>
    <p>
      <i>Power Integrations, InnoSwitch and the Power Integrations logo are
      trademarks or registered trademarks of Power Integrations, Inc.</i>
    </p>
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      <tr>
        <td colspan="17" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>POWER INTEGRATIONS, INC.</b><br><b>CONSOLIDATED STATEMENTS OF
          INCOME</b><br><b>(in thousands, except per-share amounts)</b>
        </td>
      </tr>
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        </td>
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        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="11" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td colspan="4">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2017</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>December 31, 2016</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          NET REVENUES
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          104,688
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          102,436
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          88,036
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          COST OF REVENUES
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          54,212
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          52,360
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          43,548
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          GROSS PROFIT
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          50,476
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          50,076
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          44,488
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          OPERATING EXPENSES:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          16,640
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          15,766
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          14,779
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          Sales and marketing
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          11,633
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          11,941
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,740
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          General and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          8,704
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          8,257
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          7,850
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          583
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          584
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          666
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Total operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          37,560
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          36,548
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          34,035
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          INCOME FROM OPERATIONS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          12,916
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          13,528
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,453
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Other income, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          506
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          299
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          261
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          INCOME BEFORE INCOME TAXES
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          13,422
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          13,827
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,714
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          PROVISION FOR INCOME TAXES
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (677
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (476
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          335
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          NET INCOME
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          14,099
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          14,303
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          10,379
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          EARNINGS PER SHARE:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; padding-bottom: 4.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.48
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.49
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.36
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; padding-bottom: 4.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.47
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.48
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.35
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          SHARES USED IN PER-SHARE CALCULATION:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,456
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,196
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          28,679
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          30,248
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,914
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,244
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          SUPPLEMENTAL INFORMATION:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          Stock-based compensation expenses included in:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Cost of revenues
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          143
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          417
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          90
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,966
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,469
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Sales and marketing
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,097
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,027
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; padding-bottom: 2.0px; text-align: left">
          General and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          2,095
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          2,025
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,830
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 25.0px; padding-bottom: 4.0px; text-align: left">
          Total stock-based compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          4,969
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          5,668
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          4,416
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          Cost of revenues includes:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; padding-bottom: 4.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          939
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          939
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          961
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          General &amp; administrative expenses include:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; padding-bottom: 4.0px; text-align: left">
          Patent-litigation expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          1,844
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          2,150
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          1,159
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          Other income, net includes:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; padding-bottom: 4.0px; text-align: left">
          Amortization of in-place lease intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          90
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          90
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          90
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 0.0px; text-align: left">
          REVENUE MIX BY END MARKET
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Communications
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          28
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          23
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Computer
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          6
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          6
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Consumer
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          37
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          37
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          38
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td colspan="4" valign="top" style="padding-left: 15.0px; text-align: left">
          Industrial
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          31
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          28
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          33
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td colspan="4">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="18">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="18" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>POWER INTEGRATIONS, INC.</b><br><b>RECONCILIATION OF NON-GAAP
          FINANCIAL MEASURES TO GAAP RESULTS</b><br><b>(in thousands, except
          per-share amounts)</b>
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="11" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2017</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>December 31, 2016</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <b>RECONCILIATION OF GROSS PROFIT</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          GAAP gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          50,476
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          50,076
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          44,488
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>GAAP gross margin</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>48.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>48.9</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>50.5</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          Stock-based compensation included in cost of revenues
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          143
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          417
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          90
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          939
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          939
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          961
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Non-GAAP gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          51,558
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          51,432
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          45,539
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>Non-GAAP gross margin</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>49.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>50.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>51.7</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <b>RECONCILIATION OF OPERATING EXPENSES</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          GAAP operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          37,560
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          36,548
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          34,035
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Less: Stock-based compensation expense included in operating
            expenses
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 50.0px; text-align: left">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,634
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,966
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,469
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 50.0px; text-align: left">
          Sales and marketing
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,097
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,027
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 50.0px; padding-bottom: 2.0px; text-align: left">
          General and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          2,095
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          2,025
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,830
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 50.0px; padding-bottom: 2.0px; text-align: left">
          Total
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          4,826
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          5,251
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          4,326
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 40.0px; padding-bottom: 2.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          583
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          584
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          666
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Non-GAAP operating expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          32,151
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          30,713
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          29,043
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <b>RECONCILIATION OF INCOME FROM OPERATIONS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          GAAP income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          12,916
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          13,528
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,453
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>GAAP operating margin</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>12.3</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>13.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>11.9</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Add: Total stock-based compensation
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          5,668
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,416
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,522
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,523
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,627
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Non-GAAP income from operations
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          19,407
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          20,719
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          16,496
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>Non-GAAP operating margin</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>18.5</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>20.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>18.7</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <b>RECONCILIATION OF PROVISION FOR INCOME TAXES</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          GAAP provision for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (677
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (476
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          335
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>GAAP effective tax rate</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>-5.0</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>-3.4</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>3.1</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Tax effect of adjustments to GAAP results
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (1,533
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (724
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (301
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Non-GAAP provision for income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          856
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          248
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          636
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          <i>Non-GAAP effective tax rate</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>4.3</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>1.2</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          <i>3.8</i>
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          <i>%</i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          <b>RECONCILIATION OF NET INCOME PER SHARE (DILUTED)</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          GAAP net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          14,099
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          14,303
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,379
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; text-align: left">
          Adjustments to GAAP net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          Stock-based compensation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          5,668
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,416
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          Amortization of acquisition-related intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,522
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,523
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,627
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; text-align: left">
          Amortization of in-place lease intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          90
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          90
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          90
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 15.0px; padding-bottom: 2.0px; text-align: left">
          Tax effect of items excluded from non-GAAP results
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (1,533
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (724
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (301
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          Non-GAAP net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          19,147
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          20,860
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          16,211
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Average shares outstanding for calculation of non-GAAP income per
            share (diluted)
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          30,248
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          29,914
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          29,244
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          Non-GAAP net income per share (diluted)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.63
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.70
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.55
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5" valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          GAAP income per share
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.47
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.48
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          0.35
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="5">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="10">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="10" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>POWER INTEGRATIONS, INC.</b><br><b>CONSOLIDATED BALANCE SHEETS</b><br><b>(in
          thousands)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2017</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>December 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>ASSETS</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          CURRENT ASSETS:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          46,335
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          62,134
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Short-term marketable securities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          203,753
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          188,323
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          15,046
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          6,528
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          51,149
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          52,564
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          16,770
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          8,715
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Total current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          333,053
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          318,264
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          PROPERTY AND EQUIPMENT, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          105,893
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          95,296
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          INTANGIBLE ASSETS, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,890
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          31,502
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          GOODWILL
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          91,849
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          91,849
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          DEFERRED TAX ASSETS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          19,857
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          11,342
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; padding-bottom: 2.0px; text-align: left">
          OTHER ASSETS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          8,118
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          6,157
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 4.0px; text-align: left">
          Total assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          588,660
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          554,410
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          CURRENT LIABILITIES:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          37,478
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29,727
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Accrued payroll and related expenses
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          9,146
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,756
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Taxes payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          877
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          729
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Other accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          3,409
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          2,734
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Total current liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          50,910
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          43,946
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          LONG-TERM LIABILITIES:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Income taxes payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          2,804
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          2,639
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Deferred tax liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          688
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          820
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Other liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          4,115
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          3,921
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Total liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          58,517
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          51,326
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>STOCKHOLDERS' EQUITY:</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          29
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          28
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Additional paid-in capital
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          182,235
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          172,875
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Accumulated other comprehensive loss
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,514
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,710
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; padding-bottom: 2.0px; text-align: left">
          Retained earnings
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          350,393
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          332,891
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Total stockholders' equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          530,143
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          503,084
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 4.0px; text-align: left">
          Total liabilities and stockholders' equity
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          588,660
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          554,410
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-indent: 0pt; margin-bottom: 10pt; margin-right: 0pt; width: 100%; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 8pt; margin-bottom: 10.0px; width: 100%; font-family: Times New Roman">
      <tr>
        <td colspan="14">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="14" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>POWER INTEGRATIONS, INC.</b><br><b>CONSOLIDATED STATEMENTS OF
          CASH FLOWS</b><br><b>(in thousands)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="11" valign="top" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: center">
          <b>Three Months Ended</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2017</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>December 31, 2016</b>
        </td>
        <td>

        </td>
        <td colspan="3" valign="top" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: center">
          <b>March 31, 2016</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          CASH FLOWS FROM OPERATING ACTIVITIES:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Net income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          14,099
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          14,303
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          $
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          10,379
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Adjustments to reconcile net income to cash provided by operating
          activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Depreciation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,112
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,142
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,315
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Amortization of intangible assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,612
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,612
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,792
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Loss on disposal of property and equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          38
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          116
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          78
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Stock-based compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          5,668
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,416
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Amortization of premium on marketable securities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          251
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          71
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          260
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (1,105
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (1,144
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (81
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Increase (decrease) in accounts receivable allowances
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (96
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          89
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 25.0px; text-align: left">
          Change in operating assets and liabilities:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; text-align: left">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (8,518
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          6,347
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,585
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; text-align: left">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          1,415
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,623
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          6,269
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; text-align: left">
          Prepaid expenses and other assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (8,234
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (448
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (1,388
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; text-align: left">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,377
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (1,323
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (1,840
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Taxes payable and other accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (315
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          1,117
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (1,413
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 45.0px; padding-bottom: 2.0px; text-align: left">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          5,947
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          27,742
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          20,291
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          CASH FLOWS FROM INVESTING ACTIVITIES:
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Purchases of property and equipment
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (6,403
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (4,124
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (2,095
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Purchases of marketable securities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (61,938
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (66,256
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (45,227
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; padding-bottom: 2.0px; text-align: left">
          Proceeds from sales and maturities of marketable securities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          46,340
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          8,295
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          38,531
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Net cash used in investing activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (22,001
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (62,085
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (8,791
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          CASH FLOWS FROM FINANCING ACTIVITIES
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Net proceeds from issuance of common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,392
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,387
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          2,957
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Repurchase of common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (6,085
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; padding-bottom: 2.0px; text-align: left">
          Payments of dividends to stockholders
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (4,137
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (3,800
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (3,729
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 35.0px; padding-bottom: 2.0px; text-align: left">
          Net cash provided by (used in) financing activities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          255
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          587
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          (6,857
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (15,799
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          (33,756
        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="padding-right: 0.0px; padding-left: 0.0px; white-space: nowrap; text-align: right">
          4,643
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; text-align: left">
          CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          62,134
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          95,890
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom-style: solid; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 1.0pt; text-align: right">
          90,092
        </td>
        <td style="border-bottom-style: solid; border-bottom-color: black; border-bottom-width: 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 4.0px; text-align: left">
          CASH AND CASH EQUIVALENTS AT END OF PERIOD
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          46,335
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          62,134
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom-style: double; padding-right: 0.0px; border-bottom-color: black; padding-left: 0.0px; white-space: nowrap; border-bottom-width: 2.25pt; text-align: right">
          94,735
        </td>
        <td style="border-bottom-style: double; border-bottom-color: black; border-bottom-width: 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>Power Integrations, Inc.<br>Joe Shiffler, 408-414-8528<br><u><i>joe@power.com</i></u>
    </p>
    <p>

    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
