8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
	Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

February 6, 2019

Aerohive Networks, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-36355	20-4524700
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1011 McCarthy Boulevard

Milpitas, California 95035

(Address of Principal Executive Offices including Zip Code)

(408) 510-6100

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

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 (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On February 6, 2019, Aerohive Networks, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter of 2018. In the press release, the Company also announced that it would be holding a conference call on February 6, 2019 to discuss its financial results for the fourth quarter and fiscal year of 2018 and outlook for its first quarter of fiscal year 2019. A copy of the press release is furnished as Exhibit 99.1 to this report.

This information furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition,” including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release issued by Aerohive Networks, Inc., dated February 6, 2019.

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release issued by Aerohive Networks, Inc., dated February 6, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AEROHIVE NETWORKS, INC.
By:	/s/ Steve Debenham
	Steve Debenham
	Vice President, General Counsel & Secretary

Date: February 6, 2019

EX-99.1

Exhibit 99.1

Aerohive Networks™ Reports Q4 2018 Results, with Third Consecutive Quarter of Non-GAAP Profitability

MILPITAS, CA — February 6, 2019— Aerohive Networks (NYSE: HIVE), a Cloud Networking Leader, today announced financial results for its fourth quarter and fiscal year ended December 31, 2018.

"The fourth quarter continued our return to growth and non-GAAP profitability, while also capping a year of innovation as we released several major new products, strengthening our overall offering and re-positioning us as an innovator in the space,” stated David Flynn, President and Chief Executive Officer. “We are poised for a successful 2019 with our improved operational discipline and positioning for revenue growth."

Financial Summary

Total revenue for the fourth quarter of fiscal year 2018 was $38.1 million, an increase of 7% compared with $35.7 million for the fourth quarter of 2017. Subscription and support revenue was $12.5 million, or 33% of total revenue, for the fourth quarter of fiscal year 2018, an increase of 16% compared with $10.8 million, or 30% of total revenue, for the fourth quarter of 2017.

On a GAAP basis, net loss was $5.8 million for the fourth quarter of fiscal year 2018, compared with a net loss of $4.1 million for the fourth quarter of 2017. GAAP gross margin was 65.6% for the fourth quarter of fiscal year 2018, compared with 68.5% for the fourth quarter of 2017.

On a non-GAAP basis, net income was $0.4 million for the fourth quarter of fiscal year 2018, compared with a net loss of $0.4 million for the fourth quarter of 2017. Non-GAAP gross margin was 66.3% for the fourth quarter of fiscal year 2018, compared with 69.3% for the fourth quarter of 2017.

Total revenue for fiscal year 2018 was $154.9 million, compared with $153.6 million for fiscal year 2017. Subscription and support revenue was $46.2 million, or 30% of total revenue for the year, compared with $40.4 million, or 26% of total revenue, for fiscal year 2017.

On a GAAP basis, net loss for fiscal year 2018 was $18.3 million, compared with $22.1 million in fiscal year 2017. GAAP gross margin was 65.8% for fiscal year 2018, compared with 67.4% in the year-ago period.

On a non-GAAP basis, net loss for fiscal year 2018 was $0.8 million, compared with $4.0 million in fiscal year 2017. Non-GAAP gross margin was 66.5% for fiscal year 2018, compared with 68.3% in the year-ago period.

New Accounting Standard

Effective January 1, 2018, the Company adopted ASC 606, the new accounting standard related to revenue recognition. The Company has adjusted prior-period information to reflect the adoption of this new standard.

Conference Call Information

Aerohive Networks will host a conference call and webcast for analysts and investors to discuss its fourth quarter and fiscal year 2018 results and outlook for its first quarter of fiscal year 2019 at 2:00 pm Pacific Time today, February 6, 2019. The call may be accessed by dialing 646-828-8143 and providing the passcode 7188272. A live and archived audio webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://ir.aerohive.com.

Safe Harbor Statement

This press release contains forward-looking statements, including statements regarding Aerohive Networks’ financial expectations and operating performance and expectations for continued momentum, including statements regarding the progress we are making to address challenges in our business, including sales execution issues, our ability to introduce and deliver innovative solutions as a full-stack cloud networking company, our ability to strengthen our overall offering and re-position ourselves as an innovator in the space, and our ability to strengthen our financial position including our ability to manage operational discipline and revenue growth. These forward-looking statements are based on current expectations and are subject to inherent uncertainties, risks and changes in circumstances that are difficult or impossible to predict. The actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of these uncertainties, risk and changes in circumstances, including, but not limited to, risks and uncertainties related to: our ability to continue to attract,

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integrate, retain and train skilled personnel, especially skilled R&D and sales personnel, in general and in specific regions, our ability to develop and expand our revenue opportunities and sales capacity and improve the effectiveness of our channel, our ability to resolve challenges related to sales execution and improve our operating and sales execution, general demand for wireless networking in the industry verticals we target or demand for Aerohive® products in particular, the unpredictability in any period of our ability to benefit from our participation in the E-Rate program, the impact to the revenue we recognize in any period pursuant to ASC 606 due to the level of inventory we deliver during the period to our channel partners, unpredictable and changing market conditions, risks associated with the deployment, performance and adoption of our new products and services, risks associated with our growth, competitive pressures from existing and new companies, including pricing pressures, changes in the mix and selling prices of Aerohive products, technological change, product development delays, reliance on third parties to manufacture, warehouse and timely deliver Aerohive products, our inability to protect Aerohive intellectual property or to predict or limit exposure to third-party claims relating to its or Aerohive’s intellectual property, Aerohive’s limited operating history, particularly as a public company, uses of Aerohive’s capital and general market, political, regulatory, economic and business conditions in the United States and internationally.

Additional risks and uncertainties that could affect Aerohive’s financial and operating results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s recent annual report on Form 10-K and quarterly report on Form 10-Q. Aerohive’s SEC filings are available on the Investor Relations section of the Company’s website at https://ir.aerohive.com and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Aerohive Networks disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

Aerohive’s results for its fourth quarter of fiscal year 2018 reported in this press release and the related earnings conference call include certain non-GAAP financial measures, including:

• non-GAAP gross profit and non-GAAP gross margin;

• non-GAAP product gross profit and non-GAAP product gross margin;

• non-GAAP subscription and support gross profit and non-GAAP subscription and support gross margin;

• non-GAAP operating income (loss) and non-GAAP operating margin;

• non-GAAP net income (loss) and non-GAAP net income (loss) per share;

• non-GAAP operating expenses and non-GAAP functional expenses; and

• non-GAAP operating expense percentage and non-GAAP functional expense percentage.

The Company defines non-GAAP financial measures to exclude share-based compensation, adjustments to internal-use software amortization, impairment of certain investments and certain charges related to litigation and restructuring.

The Company has included certain non-GAAP financial measures in this press release because the Company believes they are key measures which can be used to evaluate the business, measure performance, identify trends affecting the business, formulate financial projections and make strategic decisions. In particular, the exclusion of certain expenses in calculating these non-GAAP financial measures can provide a useful measure for period-to-period comparisons of the Company’s core business.

Although investors frequently use non-GAAP financial measures in their evaluations of companies, these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations, as determined in accordance with GAAP. Some of these limitations are:

• the non-GAAP measures do not consider the expense related to stock-based compensation, which is an ongoing expense for the Company;

• although amortization of internal-use software is a non-cash charge, the assets being amortized often will have to be replaced in the future, and the non-GAAP measures do not reflect any future cash requirement for such replacements;

• impairment of investment is a non-cash charge which does not directly impact the Company's current cash position; however, the charge which we exclude represents the declining value of our investment;

• excluding certain expenses associated with litigation in the quarter or fiscal year does not reflect the impact on our ongoing operations over these periods of the cash requirement to defend such or other litigation;

• restructuring charges excluded in the quarter or fiscal year primarily relate to employee termination costs and benefits and do not reflect the cash requirement relating to the costs associated with such restructuring; and

• other companies, including companies in our industry, may not exclude these as non-GAAP financial measures or may include them but calculate them differently, which reduces their usefulness as a comparative measure.

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Because of these and other limitations, you should consider non-GAAP financial measures only together with other financial performance measures, including various cash flow metrics, net loss and other GAAP results.

We have provided a description of these non-GAAP financial measures and a reconciliation of the Company's historical non-GAAP financial measures to their most-directly comparable GAAP measures in the financial statement tables included in this press release, and we encourage investors to review the reconciliation.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis due to the high variability and low visibility with respect to the charges that we exclude from these non-GAAP measures.

About Aerohive Networks

Aerohive uses Cloud Management, Machine Learning, and Artificial Intelligence to radically simplify and secure the Access Network. Our Cloud-Managed Wireless, Switching, Routing, and Security technologies provide unrivalled flexibility in deployment, management, and licensing. Credited with pioneering Controller-less Wi-Fi and Cloud Management, Aerohive delivers continuous innovation at Cloud-speed that constantly challenges the industry norm, allowing customers to rethink what's possible. Our innovations and global cloud footprint radically simplify Access Network operation for 30,000+ customers and 10+ million daily users. See how at www.aerohive.com/customers.

Aerohive was founded in 2006 and is headquartered in Milpitas, CA. For more information, please visit www.aerohive.com, call us at 408-510-6100, follow us on Twitter @Aerohive, subscribe to our blog, or become a fan on our Facebook page.

“Aerohive” is a registered trademark and "Aerohive Networks" is a trademark of Aerohive Networks, Inc. All product and company names used herein are trademarks or registered trademarks of their respective owners. All rights reserved.

Investor Relations Contact:

Melanie Solomon

The Blueshirt Group

(408) 769-6720

ir@aerohive.com

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AEROHIVE NETWORKS, INC.

Condensed Consolidated Statements of Operations

(unaudited) (in thousands, except share and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	2018			2017			2018			2017
Revenue:				(As Adjusted*)						(As Adjusted*)
Product	$	25,587		$	24,899		$	108,738		$	113,133
Subscription and support	12,528			10,828			46,171			40,425
Total revenue	38,115			35,727			154,909			153,558
Cost of revenue (1):
Product	9,648			7,950			39,293			37,115
Subscription and support	3,481			3,320			13,612			12,893
Total cost of revenue	13,129			11,270			52,905			50,008
Gross profit	24,986			24,457			102,004			103,550
Operating expenses:
Research and development (1)	9,257			8,386			35,646			36,418
Sales and marketing (1)	14,837			14,385			61,687			65,386
General and administrative (1)	6,039			5,608			22,508			23,094
Total operating expenses	30,133			28,379			119,841			124,898
Operating loss	(5,147		)	(3,922		)	(17,837		)	(21,348		)
Interest income	505			236			1,568			720
Interest expense	(205		)	(155		)	(748		)	(567		)
Other expense, net	(950		)	(40		)	(1,160		)	(308		)
Loss before income taxes	(5,797		)	(3,881		)	(18,177		)	(21,503		)
Provision for (benefit from) income taxes	(42		)	234			160			603
Net loss	$	(5,755	)	$	(4,115	)	$	(18,337	)	$	(22,106	)
Net loss per share, basic and diluted	$	(0.10	)	$	(0.08	)	$	(0.33	)	$	(0.42	)
Weighted-average shares used in computing net loss per share, basic and diluted	55,639,692			53,782,676			55,050,119			53,227,342
(1) Includes stock-based compensation as follows:
Cost of revenue	$	241		$	272		$	913		$	1,132
Research and development	1,070			1,089			4,178			4,171
Sales and marketing	1,066			742			4,325			5,103
General and administrative	1,420			1,611			5,467			6,269
Total stock-based compensation	$	3,797		$	3,714		$	14,883		$	16,675
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

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AEROHIVE NETWORKS, INC.

Condensed Consolidated Balance Sheets

(unaudited) (in thousands)

	December 31,			December 31,
	2018			2017
ASSETS				(As Adjusted*)
CURRENT ASSETS:
Cash and cash equivalents	$	26,049		$	27,249
Short-term investments	66,052			57,675
Accounts receivable, net	16,185			17,662
Inventories	16,117			13,495
Prepaid expenses and other current assets	6,399			6,396
Total current assets	130,802			122,477
Property and equipment, net	5,947			6,381
Goodwill	513			513
Other assets	4,255			4,900
Total assets	$	141,517		$	134,271
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	16,129		$	11,946
Accrued liabilities	8,937			8,602
Debt, current	20,000			—
Deferred revenue, current	38,786			33,279
Total current liabilities	83,852			53,827
Debt, non-current	—			20,000
Deferred revenue, non-current	38,475			33,761
Other liabilities	1,582			1,769
Total liabilities	123,909			109,357
Stockholders’ equity:
Preferred stock	—			—
Common stock	56			55
Additional paid–in capital	293,910			278,528
Treasury stock	(10,584		)	(6,216		)
Accumulated other comprehensive loss	(14		)	(30		)
Accumulated deficit	(265,760		)	(247,423		)
Total stockholders’ equity	17,608			24,914
Total liabilities and stockholders’ equity	$	141,517		$	134,271
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

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AEROHIVE NETWORKS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited) (in thousands)

	Year Ended December 31,
	2018			2017
Cash flows from operating activities				(As Adjusted*)
Net loss	$	(18,337	)	$	(22,106	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,034			3,083
Stock-based compensation	14,883			16,675
Impairment of investment in a privately held company	750			—
Other	(786		)	(134		)
Changes in operating assets and liabilities:
Accounts receivable, net	1,477			8,528
Inventories	(2,622		)	(866		)
Prepaid expenses and other current assets	(3		)	(494		)
Other assets	(105		)	87
Accounts payable	4,027			1,322
Accrued liabilities	344			(701		)
Other liabilities	(8		)	126
Deferred revenue	10,221			3,799
Net cash provided by operating activities	12,875			9,319
Cash flows from investing activities
Purchases of property and equipment	(2,444		)	(595		)
Maturities of short-term investments	86,652			60,150
Purchases of short-term investments	(94,227		)	(75,282		)
Net cash used in investing activities	(10,019		)	(15,727		)
Cash flows from financing activities
Proceeds from exercise of vested stock options and employee stock purchase plan	3,096			4,760
Payment for shares withheld for tax withholdings on vesting of restricted stock units	(2,596		)	(1,190		)
Payment to repurchase common stock	(4,368		)	(4,077		)
Payment on capital lease obligations	(188		)	(182		)
Net cash used in financing activities	(4,056		)	(689		)
Net decrease in cash and cash equivalents	(1,200		)	(7,097		)
Cash and cash equivalents at beginning of period	27,249			34,346
Cash and cash equivalents at end of period	$	26,049		$	27,249
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

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AEROHIVE NETWORKS, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited) (in thousands, except share and per share data)

	Three Months Ended December 31,												Year Ended December 31,
	2018						2017						2018						2017
							(As Adjusted*)												(As Adjusted*)
	Amount			Margin			Amount			Margin			Amount			Margin			Amount			Margin
Gross Profit and Gross Margin Reconciliations:
GAAP gross profit	$	24,986		65.6		%	$	24,457		68.5		%	$	102,004		65.8		%	$	103,550		67.4		%
Stock-based compensation	241			0.6		%	272			0.7		%	913			0.6		%	1,132			0.8		%
Amortization of internal-use software	35			0.1		%	35			0.1		%	140			0.1		%	140			0.1		%
Restructuring charges	—			—		%	—			—		%	—			—		%	51			—		%
Non-GAAP gross profit	$	25,262		66.3		%	$	24,764		69.3		%	$	103,057		66.5		%	$	104,873		68.3		%
Product Gross Profit and Product Gross Margin Reconciliations:
GAAP product gross margin	$	15,939		62.3		%	$	16,949		68.1		%	$	69,445		63.9		%	$	76,018		67.2		%
Stock-based compensation	27			0.1		%	25			0.1		%	117			0.1		%	190			0.2		%
Restructuring charges	—			—		%	—			—		%	—			—		%	51			—		%
Non-GAAP product gross margin	$	15,966		62.4		%	$	16,974		68.2		%	$	69,562		64.0		%	$	76,259		67.4		%
Subscription and Support Gross Profit and Subscription and Support Gross Margin Reconciliations:
GAAP subscription and support gross margin	$	9,047		72.2		%	$	7,508		69.3		%	$	32,559		70.5		%	$	27,532		68.1		%
Stock-based compensation	214			1.7		%	247			2.3		%	796			1.7		%	942			2.4		%
Amortization of internal-use software	35			0.3		%	35			0.3		%	140			0.3		%	140			0.3		%
Non-GAAP subscription and support gross margin	$	9,296		74.2		%	$	7,790		71.9		%	$	33,495		72.5		%	$	28,614		70.8		%
Operating Income (Loss) and Operating Margin Reconciliations:
GAAP operating loss	$	(5,147	)	(13.5		)%	$	(3,922	)	(11.0		)%	$	(17,837	)	(11.5		)%	$	(21,348	)	(13.9		)%
Stock-based compensation	3,797			10.0		%	3,714			10.4		%	14,883			9.6		%	16,675			10.9		%
Amortization of internal-use software	35			0.1		%	35			0.1		%	140			0.1		%	140			0.1		%
Restructuring charges	1,183			3.1		%	—			—		%	1,183			0.7		%	1,327			0.8		%
Charges related to securities litigation	366			0.9		%	—			—		%	564			0.4		%	—			—		%
Non-GAAP operating income (loss)	$	234		0.6		%	$	(173	)	(0.5		)%	$	(1,067	)	(0.7		)%	$	(3,206	)	(2.1		)%
	Amount			Per share			Amount			Per share			Amount			Per share			Amount			Per share
Net Income (Loss) and Net Income (Loss) per Share Reconciliations:
GAAP net loss	$	(5,755	)	$	(0.10	)	$	(4,115	)	$	(0.08	)	$	(18,337	)	$	(0.33	)	$	(22,106	)	$	(0.42	)
Stock-based compensation	3,797			0.07			3,714			0.07			14,883			0.28			16,675			0.32
Amortization of internal-use software	35			—			35			—			140			—			140			—
Restructuring charges	1,183			0.02			—			—			1,183			0.02			1,327			0.03
Charges related to securities litigation	366			0.01			—			—			564			0.01			—			—
Impairment of investment in a privately held company	750			$	0.01		—			—			750			0.01			—			—
Non-GAAP net income (loss), basic and diluted	$	376		$	0.01		$	(366	)	$	(0.01	)	$	(817	)	$	(0.01	)	$	(3,964	)	$	(0.07	)
Shares Used in Computing non-GAAP Basic and Diluted Net Income (Loss) per Share:
Weighted average shares used in computing net income (loss) per share, basic	55,639,692						53,782,676						55,050,119						53,227,342
Weighted average shares used in computing net income (loss) per share, diluted	56,865,117						53,782,676						55,050,119						53,227,342
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

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AEROHIVE NETWORKS, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited) (in thousands, except share and per share data)

	Three Months Ended December 31,										Year Ended December 31,
	2018					2017					2018					2017
						(As Adjusted*)										(As Adjusted*)
	Amount			% of Revenue		Amount			% of Revenue		Amount			% of Revenue		Amount			% of Revenue
Operating and Functional Expenses and Expenses Percentages Reconciliations:
GAAP research and development	$	9,257		24.3	%	$	8,386		23.5	%	$	35,646		23.0	%	36,418			23.7	%
Stock-based compensation	(1,070		)	(2.8	)%	(1,089		)	(3.1	)%	(4,178		)	(2.7	)%	(4,171		)	(2.7	)%
Restructuring charges	(608		)	(1.6	)%	—			—	%	(608		)	(0.4	)%	(838		)	(0.5	)%
Non-GAAP research and development	$	7,579		19.9	%	$	7,297		20.4	%	$	30,860		19.9	%	$	31,409		20.5	%
GAAP sales and marketing	$	14,837		38.9	%	$	14,385		40.3	%	$	61,687		39.8	%	$	65,386		42.6	%
Stock-based compensation	(1,066		)	(2.8	)%	(742		)	(2.1	)%	(4,325		)	(2.8	)%	(5,103		)	(3.3	)%
Restructuring charges	(387		)	(1.0	)%	—			—	%	(387		)	(0.2	)%	(243		)	(0.2	)%
Non-GAAP sales and marketing	$	13,384		35.1	%	$	13,643		38.2	%	$	56,975		36.8	%	$	60,040		39.1	%
GAAP general and administrative	$	6,039		15.8	%	$	5,608		15.7	%	$	22,508		14.5	%	$	23,094		15.0	%
Stock-based compensation	(1,420		)	(3.7	)%	(1,611		)	(4.5	)%	(5,467		)	(3.5	)%	(6,269		)	(4.1	)%
Restructuring charges	(188		)	(0.5	)%	—			—	%	(188		)	(0.1	)%	(195		)	(0.1	)%
Charges related to securities litigation	(366		)	(0.9	)%	—			—	%	(564		)	(0.4	)%	—			—	%
Non-GAAP general and administrative	$	4,065		10.7	%	$	3,997		11.2	%	$	16,289		10.5	%	$	16,630		10.8	%
GAAP operating expenses	$	30,133		79.1	%	$	28,379		79.4	%	$	119,841		77.4	%	$	124,898		81.3	%
Stock-based compensation	(3,556		)	(9.3	)%	(3,442		)	(9.6	)%	(13,970		)	(9.0	)%	(15,543		)	(10.1	)%
Restructuring charges	(1,183		)	(3.1	)%	—			—	%	(1,183		)	(0.8	)%	(1,276		)	(0.8	)%
Charges related to securities litigation	(366		)	(1.0	)%	—			—	%	(564		)	(0.4	)%	—			—	%
Non-GAAP operating expenses	$	25,028		65.7	%	$	24,937		69.8	%	$	104,124		67.2	%	$	108,079		70.4	%
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

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