Operating EBITDA represents loss from operations prior to adjustments for depreciation/amortization, non-recurring items and other income or expense and tax. However, other companies may calculate operating EBITDA differently. Operating EBITDA is not intended to represent cash flows as defined by generally accepted accounting principles and should not be considered as an indicator of cash flow from operations. We have included information concerning Operating EBITDA in this press release because management and our board of directors use it as a measure of our performance. In addition, future investment and capital allocation decisions are based on Operating EBITDA. Investors and industry analysts use Operating EBITDA to measure the Company’s performance compared to historic results and our peer group. The reconciliation between Operating EBITDA and net loss, the GAAP measure, is as follows:

RECONCILIATION FROM OPERATING EBITDA TO NET INCOME
QUARTER ENDED SEPTEMBER 30, 2012

(All figures are in US$ millions)
   
  Quarter ended September 30
  2012     2011
Operating EBITDA (Non-GAAP) (1.87 ) (2.31 )
Depreciation / Amortization (0.93 ) (0.93 )
Interest Income 0.49   0.76  
Foreign Exchange gain (loss) (0.03 ) (0.07 )
Equity in net loss of equity method investee -   (0.09 )
Net loss before income taxes (2.34 ) (2.64 )
Tax -   -  
Net loss (GAAP) (2.34 ) (2.64 )
 

Non-GAAP operating expenses represent our operating expenses comprised of sales and marketing, product development and general and administrative expenses excluding depreciation and amortization and foreign exchange gain (loss). We have used non-GAAP operating expenses measure to compute our Operating EBITDA. A reconciliation of GAAP operating expenses to non-GAAP operating expenses is as follows:
RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES
QUARTER ENDED SEPTEMBER 30, 2012

(All figures are in US$ millions)
   
  Quarter ended September 30
  2012     2011
Operating Expenses (GAAP) 4.16   5.60  
Depreciation/Amortization (0.93 ) (0.93 )
Foreign Exchange gain (loss) (0.03 ) (0.07 )
Operating Expenses (Non-GAAP) 3.20   4.60  

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