Spectrum Pharmaceuticals Reports Strong Revenues And Profits For Third Quarter; Revenues Of $69 Million Up 35% Over Last Year And GAAP Diluted EPS Of $0.33 And Non-GAAP Diluted EPS Of $0.42

Management uses non-GAAP net income (loss) in its evaluation of the Company's core after-tax results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Management believes that providing these non-GAAP financial measures allows investors to view the Company's financial results in the way that management views the financial results.

The non-GAAP financial measures presented herein have certain limitations in that they do not reflect all of the costs associated with the operations of the Company's business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.

Condensed Consolidated Statements of Income and Reconciliation of Non-GAAP Adjustments (In thousands, except share and per share data) (Unaudited)
				Three months ended September 30, 2012						Nine months ended September 30, 2012
				2012			2011			2012			2011
GAAP selling, general and administrative expenses				23,114			15,811			64,723			47,261
	Non GAAP adjustments to G&A:
	Reduction in staff			1,602			--			1,874			--
	Stock-based compensation			2,800			4,056			8,109			14,037
	Allos tender offer and Bayer agreement for licensing rights to market ZEVALIN outside the U.S.			2,166			--			6,224			--
	Change in fair market value of common stock warrant liability			--			(2,999	)		--			3,488
		Total adjustments to G&A		6,568			1,057			16,207			17,525
Non-GAAP selling, general and administrative				16,546			14,754			48,516			29,736
GAAP research and development				10,183			7,388			28,657			20,904
	Non-GAAP adjustments to R&D:
	Stock-based compensation			528			280			1,316			1,179
	Reduction in staff			548			--			548			--
	One-time payment for co-development agreement			--			--			1,000			--
		Total adjustments to R&D		1,076			280			2,864			1,179
Non-GAAP research and development				9,107			7,108			25,793			19,725
GAAP amortization of purchased intangibles				1,824			930			4,400			2,790
	Non-GAAP adjustments to purchased intangibles:
	Amortization			1,834			930			4,400			2,790
		Total adjustments to amortization of purchased intangibles		1,834			930			4,440			2,790
Non-GAAP amortization of purchased intangibles				--			--			--			--
GAAP income before income taxes				23,049			20,905			67,345			42,536
	Total non-GAAP adjustments			9,478			2,267			23,471			21,494
Non-GAAP income before income taxes				32,527			23,172			90,816			64,030
GAAP (provision)/benefit for income taxes				(1,737	)		(650	)		18,579			(2,300	)
	Adjustment to (provision)/benefit for income taxes			(3,316	)		--			(35,049	)		--
Non-GAAP (provision)/benefit for income taxes				(5,053	)		(650	)		(16,470	)		(2,300	)
GAAP net income				21,312			20,255			85,924			40,236
	Non-GAAP adjustments			6,162			2,267			(11,578	)		21,494
Non-GAAP net income				27,474			22,522			74,346			61,730
Non-GAAP income per share:
	Basic			0.47			0.42			1.27			1.18
	Diluted			0.42			0.38			1.15			1.08
Weighted average shares outstanding:
	Basic			58,912,031			53,810,047			58,564,176			52,477,789
	Diluted			65,139,606			59,469,863			64,880,786			57,326,069

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