August 2016 1 This presentation includes forward-looking statements - - PowerPoint PPT Presentation

August 2016

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This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements about our development of new products and product features; our anticipated growth and growth drivers; our future financial condition and results of operations; our future business, operational and financial performance; and the success and/or market adoption of our products and solutions. We have based these forward-looking statements on our current expectations, assumptions and projections. Our actual results or actions may differ materially from those projected in forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and factors that could cause results to differ materially as described in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Except as may be required by law, Calix, Inc. undertakes no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions

• r otherwise.

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1. 2. 3. 4.

Calix at a Glance Value Shift from Hardware to Software The Access Market Opportunity Financials Update

5.

Appendix

Calix at a Glance

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2010 2011 2012 2014 2015

• IPO on NYSE
• Occam

acquisition

• EMEA and

Australia expansion

• Ericsson fiber

access products acquisition

• Ericsson global

reseller agreement

• Launched Open

Link Cable

• Introduced

GigaCenter

• Introduced AXOS

platform

• Launched G.fast and

NG-PON2 products

• Expanded

GigaCenter platform Serving over 1,200 customers in more than 70 countries

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22% 66% 12%

Customer Mix - 2015

Tier 1 Tier 2/3 International

Data Center Outside Plant

Broadband Aggregation Optimization Success-based Pay- as-you-grow Architecture

Subscriber Edge

Technology & Service Optimization

E3-48C 716E E7-2 E7-20 E5-48 E5-216F GigaFamily

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E3-8G

Value Shift from Hardware to Software

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The World’s Most Advanced Operating System for Access Networks

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Typical NOS Architecture

• Application enhancements require

frequent base code changes

• No formalized programming interfaces

(APIs)

• Private/Proprietary kernel Extension
• Large diverse systems with
• pposite needs
• Stateless modules
• No object model
• Deep integration with ASIC/Silicon

Accelerating rate of change

Spaghetti OS

Services Stacks

Native Apps

On-box Off-box Applications

Services Modules

Pristine base gated OS Accelerating rate of change

AXOS Infrastructure MODULES

Compass/OSS/IT Integration REST SNMP NETCONF / YANG CLI

HARDWARE ABSTRACTION LAYER

Multi-Service Protocols OAM Timing Layer 3 Protocols Host Services Open Flow Topology & Discovery Protocols Layer 2 Protocols Multicast Protocols Traffic Management Performance Monitoring QoS Manager Platform Configuration and Upgrade Diagnostics Syslog OF Config

SERVICE ABSTRACTION LAYER/TRANSPARENT MOPS

Merchant Silicon / New Technology

• Structured like a

disaggregated model

• Formalized programming

interfaces (API)

• AXOS isolated from physical

layer

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• FAST. Time to Revenue
• Speed of New Features. Individual software components are containerized which simplifies adds /deletes /changes and

eliminates the need to constantly re-test the entire OS, thus maximizing reuse, while leveraging industry standards and

• pen source software
• Speed of New Products. The unique hardware and software abstraction layers (HAL / SAL) preserve software

independence from the underlying hardware and allow rapid development for any new access technology

ALWAYS ON. Resilient

• Eliminates maintenance windows through the live upgrade functionality
• Minimizes downtime using self-diagnosis, self-healing and process auto-restart
• Provides unprecedented visibility into application performance via monitoring and streaming data off the systems to feed

third-party or open source monitoring tools

• SIMPLE. Operational ease and flexibility
• Plugs into any open standard orchestration and management solution because it supports dynamic “state” manipulation

through standard, open interfaces

• Portable across the network with common, stable field deployed components

Rapid delivery of new services, superior customer experience and unparalleled reliability

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Controlled environment Short lifecycle / Easy to replace Partially to fully exposed environments Long lifecycle / Difficult to replace

Data Center Access Network Data Center Access Network

vs.

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The Access Market Opportunity

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Source: Infonetics, Morgan Stanley Research, UBS Research, Barclays Research, Company estimates 14

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• 10 percent of all Americans (34 million people) lack access to 25

Mbps/3 Mbps service

• Wide disparity between urban and rural subscribers
• 4 percent of urban Americans lack access to 25Mbps/3Mbps service
• 39 percent of rural Americans lack access to 25 Mbps/3 Mbps service
• US broadband access ranked 16th out of 34 countries
• Universal Service Fund transitioned to Connect America Fund to

accelerate broadband penetration

Source: FCC Broadband in America (January 2015)

Source: Morgan Stanley Research, Barclays Research, Nielsen Global Digital Landscape Report March 2015, Nielsen Total Audience 4Q14 Report, Comscore 16

COPPER FIBER WIRELESS CABLE

Unified Access Bandwidth on demand Transparent quality of experience VDSL2 Unlicensed Spectrum Wi-Fi 4x4 5G / WiFi GPON EPON XGPON-1 NGPON2 DOCSIS 3.0 CCAP G.fast A2 Unmatched subscriber experience G.hn XGS-PON Community Wi-Fi G.fast A1 HotSpot 2.0 Remote OLT DOCSIS 3.1 FTTH

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Gigabit experience

DOCSIS 3.0 24 Bonded Gigabit GPON DOCSIS 3.1 (initial)

10000

Gigabit FTTH

10G PON XGS/NG-PON2

…

10G XGS/NG-PON2

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Lower Operating Costs

Source: RVA LLC: North American FTTH Accelerates, (Q4 2014), RVA LLC North America FTTH Progress and Impact 2015 (June 2015), Google Fiber Kansas City, Bernstein Proprietary Census. Survey conducted by Haynes and Company (May 2014)

Estimated Operating Expense Savings High Customer Take Rates

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Cincinnati Bell continues to see benefits from fiber rollout

Source: Cincinnati Bell (September 2014)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% Aerial/0% MDU 100% Aerial/20% MDU 50% Aerial/0% MDU 50% Aerial/50% MDU Non-Electronics/Sub Electronics/Sub

Source: Suburban FTTP Network Scenarios, Telecom & Networking Equipment, The FTTP Renaissance, Implications for Vendors – Jefferies Group LLC May 6, 2015

Electronics represent ~15-25% of the total capex cost per unit served in a fiber deployment after initial build costs

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• Calix is a leader in G.fast technology as the first

company in the world to publicly demonstrate a true gigabit experience via bonded G.fast

• ver copper at Broadband World Forum 2015

with speeds up to with 1.5 Gb/s at 250m

• G.fast solutions are ideally suited for short

loops < 500 m and speeds from 150Mb/s to >1 Gb/s

• Per U.S. Census data there are over 34 million

multi-tenant housing units in the U.S. (per 2013 ACS) with an estimated more than 50% of these units built before 1980

• Aged residential and commercial units are

characterized by difficulties in riser access and restricted building access

• G.fast provides fiber-like broadband speeds

when fiber is not available

MDU Riser

GPON/GE G.fast 22

Financials

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($ in millions, except per share amounts)

Actual Guidance

Revenues

$107.4 $104.0-$108.0

Non-GAAP gross margin

47.5% 46%-47%

Non-GAAP operating expenses

$53.0* $52.0-$53.0**

Non-GAAP EPS – excluding Occam litigation

$0.02 ($0.04) – $0.00

Non-GAAP EPS – including Occam litigation

($0.04) ($0.09) – ($0.05)

Cash flow from operations

$0.1 Negative

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* Includes approximately $2.8M of Occam litigation-related expenses ** Included approximately $2.4M of Occam litigation-related expenses

Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website

$40.0 $42.0 $44.0 $46.0 $48.0 $50.0 $52.0 $54.0

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

OPERATING EXPENSES IN $M

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Revenues +8% y/y

• 2 > 10%

customers

• Growth across

customers, platforms and geographies

Non-GAAP gross margins of 47.5%

• Favorable product

and customer mix

• Offset by

continued ramp of turnkey network improvement project

Non-GAAP operating expenses within guidance

• R&D increase to

support growth initiatives

• Litigation expense

higher than expected

Non-GAAP EPS above guidance

• Leverage from

higher sales and gross profits

• Non-operating

items in line with expectations

($0.15) ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 $0.20

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

NON-GAAP EPS 44.8% 48.1% 49.2% 51.0% 49.3% 46.5% 48.1% 47.5% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Gross Margin (%) $60.0M $70.0M $80.0M $90.0M $100.0M $110.0M $120.0M 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Domestic Revenues International Revenues

Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website

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Revenues +8% y/y

• Growth across

customers, platforms and geographies

• Benefit from ramp
• f turnkey

network improvement project

Non-GAAP gross margins of 47.8%

• Less favorable

product and customer mix

• Accelerated ramp
• f turnkey

network improvement program

Non-GAAP operating expenses +5% ex- litigation

• Hiring to support

growth initiatives

• Litigation

expenses drove ~50% of total y/y increase

Non-GAAP EPS of ($0.13) $0.00 ex- litigation

• Higher revenues
• ffset by litigation

expenses and lower gross margins

• $0.13 drag from

litigation expenses

45.2% 47.9% 46.9% 50.1% 47.8% 2012 2013 2014 2015 2016

(7.0%) 17.5% (0.6%) 3.5% 8.2% 5.9% 16.7% 3.4% 15.9% 9.6% 13.6% 5.3%

2012 2013 2014 2015 2016 1H Revenue (% change) Operating Expenses (% change) Operating Expenses ex-litigation (% change) $0.05 $0.16 $0.07 ($0.00) ($0.13) $0.03 ($0.00) ($0.15) ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 $0.20 2012 2013 2014 2015 2016 EPS EPS ex-litigation $100.0M $120.0M $140.0M $160.0M $180.0M $200.0M $220.0M 2012 2013 2014 2015 2016 Domestic Revenues International Revenues

Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website

$88.1M $112.0M $97.8M$99.5M $93.9M $73.6M $64.3M$64.2M

$0.0M $20.0M $40.0M $60.0M $80.0M $100.0M $120.0M 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

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Cash of $64.2M

• Decline y/y due to

completion of $40M repurchase authorization in Q1 2016

• $50M line of

credit expiring September 2018 remains undrawn

Inventory velocity improving

Focus on key platforms Increased commonality of critical components

Positive operating cash flow

• Operating cash

flow generation of $0.1M

• Solid revenue

linearity

• Focus on working

capital velocity

Non-GAAP cash conversion cycle improvement

• Inventory velocity

improves by 10 days

• Linearity and key

focus on working capital

101 Days 91 Days 113 Days 108 Days 90 Days 104 Days 107 Days 101 Days

0 Days 20 Days 40 Days 60 Days 80 Days 100 Days 120 Days 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3.0 x 3.2 x 3.4 x 3.6 x 3.8 x 4.0 x 4.2 x 4.4 x 4.6 x 4.8 x 5.0 x $37.5M $39.5M $41.5M $43.5M $45.5M $47.5M $49.5M 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Inventory Inventory Turns (annualized) $15.1M

• $2.5M
• $11.9M

$5.0M$5.1M

• $4.5M

$5.3M $0.1M

• $15.0M
• $10.0M
• $5.0M

$0.0M $5.0M $10.0M $15.0M $20.0M 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website

Revenues $115-$119M Non-GAAP gross margin 45.5-46.5% Non-GAAP operating expenses – excluding litigation $53.0-$54.0M Non-GAAP operating expenses $48.5-$49.5M* Non-GAAP EPS– excluding litigation ($0.01) – $0.03 Non-GAAP EPS $0.08 – $0.12* Cash flow from operations Negative

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*Includes $4.5M (or $0.09 per share) in expected settlement proceeds for Occam litigation

Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website

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Industry and location no longer the key distinction between customers 22% 66% 12% 2015 Customer Mix

Tier 1 Tier 2/3 International

40% 60% Target Customer Mix

Small-to- medium customer Large customer

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($ in millions, except per share amounts)

2015 Long-Term Target

Revenues

$407.5 $600.0

Non-GAAP gross margin

49.0% >50%

Non-GAAP operating expenses (%)

47.4% 38-42%

Non-GAAP operating margin

1.5% >10%

Non-GAAP EPS

$0.12 >$1.25

Predictable, profitable long-term growth Reaccelerated top-line growth rate Increased leverage from Operating Platform investments Accelerated rate of change across industry Demand drivers remain intact

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Q&A

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Appendix

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PARTNERS PARTNERS SALES SALES ENGINEERING ENGINEERING

LEVERAGE

• Solve a hard problem
• nce
• Reuse successful

components

• Leverage silicon

innovation

• Can integrate

Open Source value

CUSTOMERS CUSTOMERS

VALUE

• Consistent

Behavior

• Service Resiliency
• Workflow Simplicity
• Upgradability

( features + fixes)

• Reduce OPEX

PORTFOLIO EFFECT

• Cross-selling and pull-

through sales

• Sell once, train once
• Solution Delivery

End to End

• Reduce Cost of Sales

INTEGRATION

• Tighter integration
• Broader
• pportunities
• Round out the

portfolio

• Solution Ecosystem

versus larger vendors 34

Infrastructure Layer Protocol Framework Layer Protocol and Services Layer User Interface Layer Policy and Management Layer

Hardware Abstraction Layer AXOS Merchant Silicon / New Technology Decoupled hardware and software, loosely coupled components

• Simplistic 3-layer model

transformed to fine-grained independent software components abstracted from the physical layer

• Support for 3rd party components

with internal and external APIs DATA PLANE CONTROL PLANE MANAGEMENT PLANE

D1 D2 D3 D4 C1 C2 C3 C4 B1 B2 B3 B4 A1 A2 A3 A4

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Expanded Revenues

• New Products

& Markets

• Focus on NFV

& SDN Opportunity

Increased Gross Profit

• Consistent

Gross Margin Expansion

• Funds R&D

R&D Investment

• Operating

System

• Access

Solutions

Long-Term Operating Profit Growth

G.fast

AXOS

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“Strategic revenues were up more than 25%, compared to the second quarter of 2015 as our fiber expansion continues to drive favorable returns... as we continue to transition customers from legacy-bases copper services to more strategic-based fiber offerings…Our customers' response to our fiber-based products has been outstanding. As video content consumption evolves and demand for increased bandwidth speeds accelerates, it is important for us to remain connected to our customers and to react accordingly to their changing video and data needs.” August 4, 2016 "FiOS total revenue grew 3.7%. FiOS revenue was strong, even with the work stoppage and a high prior-year comparable pay-per-view fight event. The growth in FiOS is driven by a higher customer base and the demand for higher Internet speeds. Approximately 11% of our FiOS Internet base has opted for speeds of 100 megabits or greater…We believe we have an opportunity to further penetrate the markets we serve.” July 26,

2016

“We are upgrading our broadband network to establish a foundation for sustainable growth. This segment

generates attractive cash flow by serving our largely rural footprint and the network enhancements we are making position us well competitively in our markets. During the quarter, we increased Internet availability across all speed tiers and can now offer premium Internet speeds at 50 meg and higher to approximately 23%

• f our footprint.” August 4, 2016

“We also are continuing to invest with a ‘network first’ focus on delivering higher broadband speeds and in the transformation and virtualization of our network infrastructure through the deployment of NFV and SDN

• technologies. We ended the quarter with more than 8.4 million addressable households and businesses with

40 Mbps or higher speeds, including 1.2 million GPON-enabled addressable units. We expect to reach 11 million 40 Mbps or higher, including 2 million GPON-enabled addressable households and businesses by year- end 2017.” August 3, 2016 37

Source: Company reports

Latest Quarter Wireline revenues +1% y/y Fioptics revenues +34% y/y Latest Quarter Wireline revenues -2% y/y Fios revenues +8% y/y

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$2,478 $2,562 $2,602 $2,678 $2,689 $2,770 $2,761 $2,776 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 FiOS Rev ($M) 30.0% 32.0% 34.0% 36.0% 38.0% 40.0% 42.0% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 FiOS Internet Penetration FiOS Video Penetration 100 200 300 400 5,900 5,950 6,000 6,050 6,100 6,150 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Broadband Subscribers ('000s) - LHS Prism Subscribers ('000s) - RHS $712 $727 $738 $758 $763 $773 $774 $800 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Consumer Strategic Rev ($M) $37 $40 $42 $45 $49 $55 $58 $62 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Fioptics Rev ($M) 0% 10% 20% 30% 40% 50% 60% 70% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Fioptics availability

“Broadband access has become a necessity in our everyday lives. In the past few years, broadband has brought sweeping changes in the ways Americans communicate, gather information, conduct commerce, and entertain themselves.”

STATEMENT OF FCC CHAIRMAN TOM WHEELER

“Broadband is not just a technology, it’s a platform for opportunity.”

STATEMENT OF COMMISSIONER JESSICA ROSENWORCEL

Source: 2015 BROADBAND PROGRESS REPORT AND NOTICE OF INQUIRY ON IMMEDIATE ACTION TO ACCELERATE DEPLOYMENT, FCC, January 9 2015

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Source: Telecom & Networking Equipment, The FTTP Renaissance, Implications for Vendors – Jefferies Group LLC May 6, 2015 40

14 31 43 65 76 100 122 131 132 134 20 40 60 80 100 120 140 160 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

*Additional customer deployments from Calix customers have been secured but not yet announced. Totals: 134 gigabit deployments (as of July 11, 2016) States: 43 Outside U.S.: 2 Canadian provinces and 4 other countries Calix Gigabit Deployments 41

42 Source: NTCA 2015 Broadband/Internet Availability Survey Report, June 2016 Survey responses 131 (22% of NTCA membership)

41% 45% 55% 30% 35% 40% 45% 50% 55% 60% 2013 2014 2015

Percent of providers covering 50% of customer with FTTH

61% 67% 78% 40% 45% 50% 55% 60% 65% 70% 75% 80% 2013 2014 2015

Percent building FTTH to >50% of customers 3-years out

CAPEX $25K CAPEX $8K OPEX $1K OPEX $32K

Central Office Generic

Home

20 Mbps

MDU

1:32 split

BPON ONTs

+ 1 GPON system + 32 GPON ONTs + 2 CO techs (day) + 32 techs in field (simultaneously)

GPON ONTs

GPON OLTs BPON OLTs

Total cash spend = $66K -- or $2,063 per home

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CAPEX $4K OPEX $120

Home MDU

1:32 split BPON OLTs GPON OLTs BPON OLTs + 1 GPON line card + 1 GPON OIM

• 1 BPON trade-in

+ 1 CO tech (2 hrs) + 0 techs in field (no truck roll) 80 Mbps to 1Gbps

GPON ONTs

Auto- detect

PO ONTs

Central Office

GPON OLTs

Total cash spend = $4.12K -- or $128 per home

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* Based on litigation expense reimbursement with estimated timing of settlement accrual in Q3 2016

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016E* Occam Litigation Expense ($M)

($1.7M) ($0.1M) ($0.6M) ($0.8M) ($3.4M) ($2.8M) $4.5M

Per share impact

($0.03) ($0.00) ($0.01) ($0.02) ($0.07) ($0.06) $0.09

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($ in millions, except per share amounts) (Unaudited) Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 GAAP Revenues $105,768 $111,633 $91,.038 $99,129 $112,297 $104,999 $98,375 $107,425 GAAP Cost of revenue $60,689 $60,192 $48,548 $50,840 $59,184 $58,462 $52,893 $57,419 Stock-Based Compensation (206) (206) (175) (211) (163) (160) (127) (183) Amortization of Intangibles (2,089) (2,088) (2,088) (2,088) (2,088) (2,089) (1,663) (814) Acquisition-Related Costs Non-GAAP Cost of revenue $58,394 $57,898 $46,285 $48,541 $56,933 $56,213 $51,103 $56,422 GAAP Gross Profit $45,080 $51,441 $42,490 $48,289 $53,113 $46,537 $45,482 $50,006 GAAP Gross Margin 42.6% 46.1% 46.7% 48.7% 47.3% 44.3% 46.2% 46.5% Stock-Based Compensation 206 206 175 211 163 160 127 183 Amortization of Intangibles 2,089 2,088 2,088 2,088 2,088 2,089 1,663 814 Acquisition-Related Costs Non-GAAP Gross Profit $47,375 $53,735 $44,753 $50,588 $55,364 $48,786 $47,272 $51,003 Non-GAAP Gross Margin 44.8% 48.1% 49.2% 51.0% 49.3% 46.5% 48.1% 47.5%

Q3 2014 – Q2 2016 Cost of Revenue and Gross Profit

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($ in millions, except per share amounts) Unaudited Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 GAAP Operating Expenses $48,824 $54,294 $54,377 $54,054 $52,236 $56,272 $56,220 $55,887 Stock-Based Compensation (3,607) (3,692) (3,487) (4,130) (2,427) (3,052) (2,594) (2,785) Amortization of Intangibles (2,552) (2,552) (2,552) (2,552) (2,552) (2,552) (1,701) Acquisition-Related Costs (978) (190) (52) (106) (24) (275) (76) Non-GAAP Operating Expenses $42,665 $47,072 $48,148 $47,320 $47,151 $50,644 $51,650 $53,026 GAAP Net Income/(Loss) ($3,848) ($2,988) ($11,930) ($5,779) $922 ($9,546) ($10,729) ($5,826) Stock-Based Compensation 3,831 3,898 3,662 4,341 2,590 3,212 2,721 2,968 Amortization of Intangibles 4,641 4,640 4,640 4,640 4,640 4,641 3,364 814 Acquisition-Related Costs 978 190 52 106 24 275 76 Non-GAAP Net Income/(Loss) $4,624 $6,528 ($3,438) $3,254 $8,258 ($1,669) ($4,369) ($1,968) Basic Shares 51,048 51,300 51,732 51,950 51, 756 50,578 48,591 48,371 Diluted Shares 51,552 52,047 51,732 52,455 52,016 50,578 48,591 48,371 GAAP Income/(Loss) per share ($0.08) ($0.06) ($0.23) ($0.11) $0.02 ($0.19) ($0.22) ($0.12) Stock-Based Compensation 0.07 0.07 0.07 0.08 0.05 0.06 0.06 0.06 Amortization of Intangibles 0.09 0.09 0.09 0.09 0.09 0.09 0.07 0.02 Acquisition-Related Costs 0.00 0.02 0.00 0.00 0.00 0.00 0.01 0.00 Non-GAAP Income/(Loss) per share $0.09 $0.13 ($0.07) $0.06 $0.16 ($0.03) ($0.09) ($0.04)

Q3 2014 – Q2 2016 Operating Expense and Net Income/(Loss)

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