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Gigamon Reports Fourth Quarter and Fiscal Year 2013 Financial Results

Companies mentioned in this article: Gigamon Inc.

SILICON VALLEY, Calif., Feb. 4, 2014 /PRNewswire/ -- Gigamon(® )Inc. (NYSE:GIMO), a leader in traffic visibility solutions with the innovative Visibility Fabric(TM) architecture, today released financial results for the fourth quarter and fiscal year ended December 28, 2013.

Fiscal Fourth Quarter 2013 Financial Highlights:

    --  Revenues for the fourth quarter of fiscal 2013 were $43.1 million,
        compared to $31.9 million in the fourth quarter of fiscal 2012,
        representing growth of 35% year-over-year.
    --  GAAP gross margins of 80% in the fourth quarter of fiscal 2013, compared
        to 79% in the fourth quarter of fiscal 2012.
    --  Non-GAAP gross margins of 81% in the fourth quarter of fiscal 2013,
        compared to 79% in the fourth quarter of fiscal 2012.
    --  GAAP net loss for the fourth quarter of fiscal 2013 was $0.1 million, or
        $0.00 per diluted share, compared to GAAP net income of $2.1 million, or
        $0.12 per diluted share, in the fourth quarter of fiscal 2012.
    --  Non-GAAP net income for the fourth quarter of fiscal 2013 was $6.0
        million, or $0.18 per diluted share, compared to non-GAAP net income of
        $4.9 million, or $0.28 per diluted share, in the fourth quarter of
        fiscal 2012.
    --  We generated $22.5 million of cash from operations.

Fiscal Year 2013 Financial Highlights:

    --  Revenues for fiscal year 2013 were $140.3 million, compared to $96.7
        million in fiscal year 2012, representing growth of 45% year-over-year.
    --  GAAP gross margins of 78% in fiscal year 2013, compared to 79% in fiscal
        year 2012.
    --  Non-GAAP gross margins of 81% in fiscal year 2013, compared to 79% in
        fiscal year 2012.
    --  GAAP net loss for fiscal year 2013 was $9.5 million, or $0.39 per
        diluted share, compared to GAAP net income of $3.6 million, or $0.21 per
        diluted share, in fiscal year 2012.
    --  Non-GAAP net income for fiscal year 2013 was $15.9 million, or $0.53 per
        diluted share, compared to non-GAAP net income of $11.1 million, or
        $0.62 per diluted share, in fiscal year 2012.
    --  We generated $23.6 million of cash from operations.

"We are pleased to have exceeded our guidance for both revenue and earnings in the fourth quarter," said Paul Hooper, CEO of Gigamon. "In the quarter we added 92 new customers, including 15 Fortune 1000 companies, continued to expand our portfolio of pervasive visibility and traffic intelligence solutions and laid the foundation for continued growth in 2014."

Recent Business Highlights:

    --  Announced new applications and enhancements designed to provide Traffic
        Intelligence as the next phase of the Visibility Fabric evolution for
        enterprises and service providers.
    --  Introduced a NetFlow Generation application to optimize network
        management.
    --  Increased the attach rate of the GigaSMART® platform in the fourth
        quarter.
    --  Named one of the fastest growing companies in North America on
        Deloitte's 2013 Technology Fast 500(TM).
    --  Recognized as Business Analytics Innovator of the Year by Telecom Asia's
        Readers' Choice & Innovation Awards for vision and industry leadership.

Conference Call Information:

Gigamon will host an investor conference call and live webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the fourth quarter and fiscal year ended December 28, 2013. To access the conference call, dial 877-941-2068, using conference code 4659690. Callers outside the U.S. and Canada should dial 480-629-9712, using conference code 4659690. A replay of the conference call will be available through Tuesday, February 11, 2014. To access the replay, please dial 800-406-7325 and enter pass code 4659690. Callers outside the U.S. and Canada should dial 303-590-3030 and enter pass code 4659690. The live webcast will be accessible on Gigamon's investor relations website at http://investor.gigamon.com and will be archived and available on this site for twelve months.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Gigamon considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company's management for that purpose. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure attached to this release.

Legal Notice Regarding Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our expectations that in 2014 our business will continue to grow. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products; our ability to retain existing customers and generate new customers; the market for network traffic visibility solutions not continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2013, filed with the Securities and Exchange Commission on November 7, 2013. The forward-looking statements in this press release are based on information available to Gigamon as of the date hereof, and Gigamon disclaims any obligation to update any forward-looking statements, except as required by law.

About the Visibility Fabric architecture

At Gigamon we realized that delivering the visibility essential to manage, analyze and secure the complex system that is the IT infrastructure requires a new approach. With millions of traffic flows across thousands of endpoints, visibility needs to be pervasive, intelligent and dynamic. Using our patented, unique technology, we created an innovative new approach for delivering this visibility called the Visibility Fabric architecture. This new approach is intelligent and versatile in its ability to enable visibility into the network. For more information visit http://www.gigamon.com/traffic-visibility-fabric.

About Gigamon

Gigamon provides an intelligent Visibility Fabric(TM) architecture for enterprises, data centers and service providers around the globe. Our technology empowers infrastructure architects, managers and operators with pervasive and dynamic intelligent visibility of traffic across both physical and virtual environments without affecting the performance or stability of the production network. Through patented technologies and centralized management, the Gigamon GigaVUE portfolio of high availability and high density products intelligently delivers the appropriate network traffic to management, analysis, compliance and security tools. With over eight years' experience designing and building traffic visibility products in the US, Gigamon solutions are deployed globally across vertical markets including over half of the Fortune 100 and many government and federal agencies. www.gigamon.com



                                                                                                                Gigamon Inc.

                                                                                                    Consolidated Statements of Operations

                                                                                                  (In thousands, except per share amounts)

                                                                                                                 (unaudited)


                                                                  Three Months Ended                    Fiscal Year Ended
                                                                  ------------------                    -----------------

                                                                     December 28,                         December 31,                     December 28,           December 31,

                                                                                            2013                                  2012                  2013 (4)                           2012
                                                                                            ----                                  ----                   -------                           ----

    Revenue:

         Product                                                                         $31,698                               $23,710                  $101,717                        $69,516

         Service                                                                          11,389                                 8,142                    38,578                         27,199
                                                                                          ------                                 -----                    ------                         ------

    Total revenue                                                                         43,087                                31,852                   140,295                         96,715


    Cost of revenue:

         Product (4)                                                                       7,646                                 6,064                    26,103                         18,039

         Service                                                                           1,170                                   744                     4,727                          2,246
                                                                                           -----                                   ---                     -----                          -----

    Cost of revenue (1), (2)                                                               8,816                                 6,808                    30,830                         20,285
                                                                                           -----                                 -----                    ------                         ------

    Gross profit                                                                          34,271                                25,044                   109,465                         76,430


    Operating expenses:

       Research and development (1),
        (2)                                                                               10,341                                 5,406                    42,067                         17,730

       Sales and marketing (1), (2)                                                       18,004                                12,061                    72,024                         39,359

       General and administrative (1),
        (2)                                                                                4,682                                 3,904                    25,575                         11,665

          Total operating expenses                                                        33,027                                21,371                   139,666                         68,754
                                                                                          ------                                ------                   -------                         ------

    Income (loss) from operations                                                          1,244                                 3,673                   (30,201)                         7,676

    Other income (expense):

       Interest income                                                                        60                                     3                        95                             64

       Other expense, net                                                                    (17)                                  (20)                      (94)                           (70)
                                                                                             ---                                   ---                       ---                            ---

    Income (loss) before income
     taxes                                                                                 1,287                                 3,656                   (30,200)                         7,670

    Income tax (expense) benefit (3)
     (4)                                                                                  (1,375)                                  (11)                   20,663                           (139)
                                                                                          ------                                   ---                    ------                           ----

    Net (loss) income                                                                        (88)                                3,645                    (9,537)                         7,531
                                                                                             ===                                 =====                    ======                          =====

    Accretion of preferred stock                                                               -                                  (575)                   (1,088)                        (2,236)

    (Earnings) loss attributable to
     preferred stock holders                                                                   -                                  (980)                    1,107                         (1,690)

    Net (loss) income to common
     stock holders                                                                          $(88)                               $2,090                   $(9,518)                        $3,605
                                                                                            ====                                ======                   =======                         ======


    Net (loss) income per share attributable to common stock holders:

       Basic                                                                              $(0.00)                                $0.12                    $(0.39)                         $0.21
                                                                                          ======                                 =====                    ======                          =====

       Diluted                                                                            $(0.00)                                $0.12                    $(0.39)                         $0.21
                                                                                          ======                                 =====                    ======                          =====

    Weighted-average number of
     shares used in per share
     amounts:

       Basic                                                                              31,246                                17,300                    24,722                         17,300
                                                                                          ======                                ======                    ======                         ======

       Diluted                                                                            31,246                                17,393                    24,722                         17,303
                                                                                          ======                                ======                    ======                         ======



    (1) Includes stock-based compensation expenses, as follows:

    Cost of revenue                                                                         $449                                   $19                    $3,496                           $153

    Research and development                                                               2,620                                   182                    11,467                            542

    Sales and marketing                                                                    2,606                                   334                    11,034                            893

    General and administrative                                                             1,511                                   735                     6,546                          2,011

       Total stock-based compensation
        expenses                                                                          $7,186                                $1,270                   $32,543                         $3,599
                                                                                          ======                                ======                   =======                         ======


    (2) Includes performance unit plan compensation expenses, as follows:

    Cost of revenue                                                  $                         -           $                         -                      $353  $                           -

    Research and development                                                                   -                                     -                     5,188                              -

    Sales and marketing                                                                        -                                     -                     7,991                              -

    General and administrative                                                                 -                                     -                     6,839                              -

       Total performance unit plan
        compensation expenses                                        $                         -           $                         -                   $20,371  $                           -
                                                                     ===========================           ===========================                   =======  =============================


    (3) Includes tax benefit upon
     conversion of LLC to a C
     Corporation on May 31, 2013                                     $                         -           $                         -                   $14,811  $                           -

    (4) The Company has revised its financial
     statements for the second quarter and third
     quarter of fiscal 2013 to reflect certain
     corrections related to its accounting for  income
     taxes and inventory reserve releases, which also
     impacted the Company's results for the full
     fiscal year 2013. In accordance with applicable
     accounting guidance, the Company concluded that
     these corrections were not material to any of its
     previously issued financial statements. Please
     see the tables titled, "Impact of Revisions on
     Reported GAAP Statements of Operations" following
     the "GAAP Quarterly Trended Statements of
     Operations" table and "Impact of Revisions on
     Reported Non-GAAP Statements of Operations"
     following the "Non-GAAP Quarterly Trended
     Statement of Operations" table for further
     details.




                                                                 Gigamon Inc.

                                                          Consolidated Balance Sheets

                                                                (In thousands)

                                                                  (unaudited)


                                                          December 28,                December 31,

                                                                                2013                  2012
                                                                                ----                  ----

    Assets

    Current assets:

       Cash and cash
        equivalents                                                          $79,908               $18,675

       Short-term investments                                                 58,242                     -

       Accounts receivable,
        net                                                                   24,528                20,677

       Inventories                                                             1,484                 3,736

       Deferred income tax
        asset                                                                  3,574                     -

       Prepaid expenses and
        other current assets                                                   5,606                 3,407
                                                                               -----                 -----

          Total current assets                                               173,342                46,495


       Property and equipment,
        net                                                                    4,389                 2,686

       Deferred income tax
        asset, non-current                                                    17,315                     -

       Other assets                                                              471                 2,316
                                                                                 ---                 -----

          Total assets                                                      $195,517               $51,497
                                                                            ========               =======


    Liabilities, Preferred Stock and Stockholders' Equity (Deficit)

    Current liabilities:

       Accounts payable                                                       $1,405                $3,221

       Accrued liabilities                                                    22,401                13,889

       Members' distribution
        payable                                                                  476                 4,821

       Deferred revenue                                                       37,592                23,917
                                                                              ------                ------

          Total current
           liabilities                                                        61,874                45,848


    Deferred revenue, non-
     current                                                                   9,884                 6,903

    Other liabilities                                                            321                   447


    Commitments and contingencies

    Series A preferred
     stock                                                                         -                28,344


    Stockholders' equity (deficit):

    Common stock                                                                   3                 1,625

    Preferred stock                                                                -                     -

    Treasury stock                                                           (12,469)              (12,469)

    Additional paid in
     capital                                                                 144,810                 1,522

    Accumulated other
     comprehensive income                                                         23                     -

    Accumulated deficit                                                       (8,929)              (20,723)

           Total stockholders'
            equity (deficit)                                                 123,438               (30,045)
                                                                             -------               -------

              Total liabilities,
               preferred stock and
               stockholders' equity
               (deficit)                                                    $195,517               $51,497
                                                                            ========               =======


                                                                                                   Gigamon Inc.

                                                                                      Consolidated Statements of Cash Flows

                                                                                                  (In thousands)

                                                                                                   (unaudited)


                                                          Three Months Ended                Fiscal Year Ended
                                                          ------------------                -----------------

                                                             December 28,                      December 31,                 December 28,          December 31,

                                                                                2013                               2012                     2013                  2012
                                                                                ----                               ----                     ----                  ----

    Operating activities:

    Net (loss) income                                                           $(88)                            $3,645                  $(9,537)               $7,531

    Adjustments to reconcile net (loss) income to net cash provided
     by operating activities:

    Depreciation and
     amortization                                                                886                                476                    2,850                 1,354

    Stock-based compensation
     expense                                                                   7,186                              1,270                   32,543                 3,599

    Deferred income taxes                                                      1,293                                  -                  (20,889)                    -

    Inventory (recovery) write-
     down                                                                       (326)                               (44)                    (816)                1,543

    Loss on disposal of fixed
     assets                                                                        -                                  1                       14                    52

    Changes in operating assets and liabilities:

    Accounts receivable, net                                                   2,507                             (9,358)                  (3,851)               (4,280)

    Inventories                                                                  896                              1,028                    5,103                 3,004

    Prepaid expenses and other
     assets                                                                   (1,005)                               239                   (3,274)                1,621

    Accounts payable                                                            (109)                             1,516                   (1,752)                  398

    Accrued and other
     liabilities                                                               4,757                               (943)                   6,526                 4,000

    Deferred revenue                                                           6,531                              3,965                   16,656                 8,858
                                                                               -----                              -----                   ------                 -----

      Net cash provided by
       operating activities                                                   22,528                              1,795                   23,573                27,680

    Investing activities:

    Purchase of short-term
     investments                                                             (19,383)                                 -                  (59,725)                    -

    Sale of short-term
     investments                                                               2,000                                  -                    2,000                     -

    Purchase of property and
     equipment                                                                (1,481)                              (501)                  (4,307)               (2,006)
                                                                              ------                               ----                   ------                ------

      Net cash used in investing
       activities                                                            (18,864)                              (501)                 (62,032)               (2,006)

    Financing activities:

    (Offering costs paid for)
     proceeds from initial
     public offering, net                                                       (111)                            (1,348)                  95,280                (1,920)

    Proceeds from follow-on
     public offering, net                                                     10,232                                  -                   10,232                     -

    Proceeds from exercise of
     stock options                                                             1,608                                  -                    1,719                     -

    Shares repurchased for tax
     withholdings on vesting of
     restricted stock units                                                     (518)                                 -                     (518)                    -

    Distribution of income to
     LLC members                                                                 (24)                            (4,981)                  (7,021)              (18,181)
                                                                                 ---                             ------                   ------               -------

      Net cash provided by (used
       in) financing activities                                               11,187                             (6,329)                  99,692               (20,101)

    Net increase (decrease) in
     cash and cash equivalents                                                14,851                             (5,035)                  61,233                 5,573

    Cash and cash equivalents
     at beginning of period                                                   65,057                             23,710                   18,675                13,102
                                                                              ------                             ------                   ------                ------

    Cash and cash equivalents
     at end of period                                                        $79,908                            $18,675                  $79,908               $18,675
                                                                             =======                            =======                  =======               =======


                                                                                               Gigamon Inc.

                                                                              Reconciliation of Non-GAAP Financial Measures

                                                                       Impact of Non-GAAP Adjustments on Reported Net (Loss) Income

                                                                                    (In thousands, except percentages)

                                                                                               (unaudited)


                                           Three Months Ended                              Fiscal Year Ended
                                           ------------------                              -----------------

                                              December 28,                                    December 31,                          December 28,           December 31,

                                                                 2013                                               2012                             2013                  2012
                                                                 ----                                               ----                             ----                  ----

    Reconciliation of Gross Profit and
     Gross Margin on a GAAP Basis to
     Gross Profit and Gross Margin on a
     Non-GAAP Basis:

    Gross profit on a GAAP basis                              $34,271                                            $25,044                         $109,465               $76,430

       Stock-based compensation expense                           449                                                 19                            3,496                   153

       Performance unit plan compensation
        expense                                                     -                                                  -                              353                     -

    Gross profit on a Non-GAAP basis                          $34,720                                            $25,063                         $113,314               $76,583
                                                              =======                                            =======                         ========               =======


    Revenue                                                   $43,087                                            $31,852                         $140,295               $96,715

        Gross margin on a GAAP basis                               80%                                                79%                              78%                   79%

        Gross margin on a Non-GAAP basis                           81%                                                79%                              81%                   79%


    Reconciliation of Operating Income
     (Loss) and Operating Margin on a
     GAAP Basis to Operating Income and
     Operating Margin on a Non-GAAP
     Basis:

    Operating income (loss) on a GAAP
     basis                                                     $1,244                                             $3,673                         $(30,201)               $7,676

       Stock-based compensation expense                         7,186                                              1,270                           32,543                 3,599

       Performance unit plan compensation
        expense                                                     -                                                  -                           20,371                     -

    Operating income on a Non-GAAP
     basis                                                     $8,430                                             $4,943                          $22,713               $11,275
                                                               ======                                             ======                          =======               =======


        Operating margin on a GAAP basis                            3%                                                12%                             -22%                    8%

        Operating margin on a Non-GAAP
         basis                                                     20%                                                16%                              16%                   12%


    Reconciliation of Net (Loss) Income
     Attributable To Common
     Stockholders on a GAAP Basis to
     Net Income Attributable To Common
     Stockholders on a Non-GAAP Basis:

    Net (loss) income attributable to
     common stock holders on a GAAP
     basis                                                       $(88)                                            $2,090                          $(9,518)               $3,605

         Accretion of preferred stock                               -                                                575                            1,088                 2,236

         Earnings (loss) attributable to
          preferred stock holders                                   -                                                980                           (1,107)                1,690

       Stock-based compensation expense                         7,186                                              1,270                           32,543                 3,599

        Performance unit plan compensation
         expense                                                    -                                                  -                           20,371                     -

        Tax benefit upon conversion of LLC
         to a C Corporation                                         -                                                  -                           14,811                     -

        Income tax effect of Non-GAAP
         adjustments                                           (1,128)                                                 -                          (42,295)                    -

    Net income on a Non-GAAP basis                             $5,970                                             $4,915                          $15,893               $11,130
                                                               ======                                             ======                          =======               =======

                                                                                                                                                                                                                                                           
                                                                                                                        Gigamon Inc.
                                                                                                                                                                                                                                                           
                                                                                                 Reconciliation of Non-GAAP Financial Measures (continued)
                                                                                                                                                                                                                                                           
                                                                                                Impact of Non-GAAP Adjustments on Reported Net (Loss) Income
                                                                                                                                                                                                                                                           
                                                                                                           (In thousands, except per share data)
                                                                                                                                                                                                                                                           
                                                                                                                        (unaudited)
                                                                                                                                                                                                                                                           
                                                                                                                                                     
                                                                    Three Months Ended                                   Fiscal Year Ended
                                                                    ------------------                                  -----------------
                                                                                                                                                                                                                                                           
                                                                       December 28,                                        December 31,                                      December 28,                                       December 31,
                                                                                                                                                                                                                                                           
                                                                                             2013                                              2012                                              2013                                                2012
                                                                                             ----                                              ----                                              ----                                                ----
                                                                                                                                                                                                                                                           
    Reconciliation of Diluted Net (Loss) Income per
     Share on a GAAP Basis to Diluted Net Income
     per Share on a Non-GAAP Basis:
                                                                                                                                                                                                                                                           
    Diluted net (loss) income per share on a GAAP
     basis                                                                                 $(0.00)                                            $0.12                                            $(0.39)                                              $0.21
                                                                                                                                                                                                                                                           
        Accretion of preferred stock                                                            -                                              0.03                                              0.04                                                0.13
                                                                                                                                                                                                                                                           
        Earnings (loss) attributable to preferred stock
         holders                                                                                -                                              0.06                                             (0.04)                                               0.10
                                                                                                                                                                                                                                                           
       Stock-based compensation expense                                                      0.23                                              0.07                                              1.32                                                0.21
                                                                                                                                                                                                                                                           
       Performance unit plan compensation expense                                               -                                                 -                                              0.82                                                   -
                                                                                                                                                                                                                                                           
        Tax benefit upon conversion of LLC to a C
         corporation                                                                            -                                                 -                                              0.60                                                   -
                                                                                                                                                                                                                                                           
        Income tax effect on non-GAAP adjustments                                           (0.04)                                                -                                             (1.71)                                                  -
                                                                                                                                                                                                                                                           
        Impact of difference in number of GAAP and non-
         GAAP diluted shares                                                                (0.01)                                                -                                             (0.11)                                              (0.03)
                                                                                                                                                                                                                                                           
    Diluted net income per share on a Non-GAAP
     basis                                                                                  $0.18                                             $0.28                                             $0.53                                               $0.62
                                                                                            =====                                             =====                                             =====                                               =====
                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                           
    Reconciliation of GAAP Diluted Weighted-
     Average Number of Shares to Non-GAAP Diluted
     Weighted-Average Number of Shares:
                                                                                                                                                                                                                                                           
    GAAP diluted weighted-average number of shares                                         31,246                                            17,393                                            24,722                                              17,303
                                                                                                                                                                                                                                                           
       Dilutive impact due to stock options,
        restricted stock units and employee stock
        purchase plan purchase rights
                                                                                                                                                                                                                  
                                                                                            2,100                                               214                                             5,323                                                 570
                                                                                                                                                                                                                                                           
    Non-GAAP diluted weighted-average number of
     shares                                                                                33,346                                            17,607                                            30,045                                              17,873
                                                                                           ======                                            ======                                            ======                                              ======



                                                                                                                                                                                                                                         Gigamon Inc.

                                                                                                                                                                                                           Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations

                                                                                                                                                                                                                 Impact of Non-GAAP Adjustments on Reported Net (Loss) Income

                                                                                                                                                                                                      For the Three Months and Fiscal Years Ended December 28, 2013 and December 31, 2012

                                                                                                                                                                                                                   (In thousands, except per share amounts and percentages)

                                                                                                                                                                                                                              (unaudited)


                                              Three Months Ended December 28, 2013                     Three Months Ended December 31, 2012          Fiscal Year Ended December 28, 2013                        Fiscal Year Ended December 31, 2012
                                              ------------------------------------                     ------------------------------------          -----------------------------------                        -----------------------------------

                                                     As Reported                   Adjustments                               Non-GAAP                         As Reported                Adjustments                                    Non-GAAP                                          As Reported           Adjustments          Non-GAAP           As Reported          Adjustments         Non-GAAP
                                                     -----------                   -----------                               --------                         -----------                -----------                                    --------                                          -----------           -----------          --------           -----------          -----------         --------

    Revenue:

      Product                                                        $31,698            $           -                                       $31,698                           $23,710         $           -                                            $23,710                                        $101,717           $        -           $101,717              $69,516        $          -           $69,516

      Service                                                         11,389                        -                                        11,389                             8,142                     -                                              8,142                                          38,578                    -             38,578               27,199                   -            27,199
                                                                      ------                      ---                                        ------                             -----                   ---                                              -----                                          ------                  ---             ------               ------                 ---            ------

    Total revenue                                                     43,087                        -                                        43,087                            31,852                     -                                             31,852                                         140,295                    -            140,295               96,715                   -            96,715


    Cost of revenue:

      Product (1), (2)                                                 7,646                     (215)                                        7,431                             6,064                    (9)                                             6,055                                          26,103               (2,308)            23,795               18,039                 (44)           17,995

      Service (1), (2)                                                 1,170                     (234)                                          936                               744                   (10)                                               734                                           4,727               (1,541)             3,186                2,246                (109)            2,137
                                                                       -----                     ----                                           ---                               ---                   ---                                                ---                                           -----               ------              -----                -----                ----             -----

    Cost of revenue                                                    8,816                     (449)                                        8,367                             6,808                   (19)                                             6,789                                          30,830               (3,849)            26,981               20,285                (153)           20,132
                                                                       -----                     ----                                         -----                             -----                   ---                                              -----                                          ------               ------             ------               ------                ----            ------

    Gross profit                                                      34,271                      449                                        34,720                            25,044                    19                                             25,063                                         109,465                3,849            113,314               76,430                 153            76,583
                                                                      ------                      ---                                        ------                            ------                   ---                                             ------                                         -------                -----            -------               ------                 ---            ------


    Product Gross
     Margin                                                               76%                                                                    77%                               74%                                                                      74%                                             74%                                     77%                  74%                                   74%

    Service Gross
     Margin                                                               90%                                                                    92%                               91%                                                                      91%                                             88%                                     92%                  92%                                   92%

    Total Gross Margin                                                    80%                                                                    81%                               79%                                                                      79%                                             78%                                     81%                  79%                                   79%


    Operating expenses:

    Research and
     development (1),
     (2)                                                              10,341                   (2,620)                                        7,721                             5,406                  (182)                                             5,224                                          42,067              (16,655)            25,412               17,730                (542)           17,188

    Sales and marketing
     (1), (2)                                                         18,004                   (2,606)                                       15,398                            12,061                  (334)                                            11,727                                          72,024              (19,025)            52,999               39,359                (893)           38,466

    General and
     administrative
     (1), (2)                                                          4,682                   (1,511)                                        3,171                             3,904                  (735)                                             3,169                                          25,575              (13,385)            12,190               11,665              (2,011)            9,654

    Total operating
     expenses                                                         33,027                   (6,737)                                       26,290                            21,371                (1,251)                                            20,120                                         139,666              (49,065)            90,601               68,754              (3,446)           65,308
                                                                      ------                   ------                                        ------                            ------                ------                                             ------                                         -------              -------             ------               ------              ------            ------

    Income (loss) from
     operations                                                        1,244                    7,186                                         8,430                             3,673                 1,270                                              4,943                                         (30,201)              52,914             22,713                7,676               3,599            11,275
                                                                       -----                    -----                                         -----                             -----                 -----                                              -----                                         -------               ------             ------                -----               -----            ------

    Other income (expense):

    Interest income                                                       60                        -                                            60                                 3                     -                                                  3                                              95                    -                 95                   64                   -                64

    Other expense, net                                                   (17)                       -                                           (17)                              (20)                    -                                                (20)                                            (94)                   -                (94)                 (70)                  -               (70)
                                                                         ---                      ---                                           ---                               ---                   ---                                                ---                                             ---                  ---                ---                  ---                 ---               ---

    Income (loss)
     before income
     taxes                                                             1,287                    7,186                                         8,473                             3,656                 1,270                                              4,926                                         (30,200)              52,914             22,714                7,670               3,599            11,269

    Income tax
     (expense) benefit
     (3), (4)                                                         (1,375)                  (1,128)                                       (2,503)                              (11)                    -                                                (11)                                         20,663              (27,484)            (6,821)                (139)                  -              (139)
                                                                      ------                   ------                                        ------                               ---                   ---                                                ---                                          ------              -------             ------                 ----                 ---              ----

    Net (loss) income                                                    (88)                   6,058                                         5,970                             3,645                 1,270                                              4,915                                          (9,537)              25,430             15,893                7,531               3,599            11,130
                                                                         ===                    =====                                         =====                             =====                 =====                                              =====                                          ======               ======             ======                =====               =====            ======

    Accretion of
     preferred stock                                                       -                        -                                             -                              (575)                  575                                                  -                                          (1,088)               1,088                  -               (2,236)              2,236                 -

    (Earnings) loss
     attributable to
     preferred stock
     holders                                                               -                        -                                             -                              (980)                  980                                                  -                                           1,107               (1,107)                 -               (1,690)              1,690                 -

    Net (loss) income
     to common stock
     holders                                                            $(88)                  $6,058                                        $5,970                            $2,090                $2,825                                             $4,915                                         $(9,518)             $25,411            $15,893               $3,605              $7,525           $11,130
                                                                        ====                   ======                                        ======                            ======                ======                                             ======                                         =======              =======            =======               ======              ======           =======


    Net (loss) income per share attributable to common
     stockholders:

    Basic                                                             $(0.00)                   $0.19                                         $0.19                             $0.12                 $0.16                                              $0.28                                          $(0.39)               $1.03              $0.64                $0.21               $0.43             $0.64
                                                                      ======                    =====                                         =====                             =====                 =====                                              =====                                          ======                =====              =====                =====               =====             =====

    Diluted                                                           $(0.00)                   $0.18                                         $0.18                             $0.12                 $0.16                                              $0.28                                          $(0.39)               $0.92              $0.53                $0.21               $0.41             $0.62
                                                                      ======                    =====                                         =====                             =====                 =====                                              =====                                          ======                =====              =====                =====               =====             =====

    Weighted-average number of shares used in per share
     amounts:

    Basic                                                             31,246                        -                                        31,246                            17,300                     -                                             17,300                                          24,722                    -             24,722               17,300                   -            17,300
                                                                      ======                      ===                                        ======                            ======                   ===                                             ======                                          ======                  ===             ======               ======                 ===            ======

    Diluted                                                           31,246                    2,100                                        33,346                            17,393                   214                                             17,607                                          24,722                5,323             30,045               17,303                 570            17,873
                                                                      ======                    =====                                        ======                            ======                   ===                                             ======                                          ======                =====             ======               ======                 ===            ======

    Notes:

    (1) Includes stock-based
     compensation in the three and
     twelve months ended December 28,
     2013 and December 31, 2012.

    (2) Includes performance unit plan
     compensation related expenses in
     the twelve months ended December
     28, 2013.

    (3) Amount for the twelve months
     ended December 28, 2013 includes
     tax benefit recorded upon the
     conversion from an LLC to a C
     Corporation on May 31, 2013.

    (4) Includes income tax effect on
     non-GAAP adjustments for the
     three and twelve months ended
     December 28, 2013.


                                                                                                                                                             Gigamon Inc.

                                                                                                                                            GAAP Quarterly Trended Statements of Operations

                                                                                                                                         (In thousands, except per share data and percentages)

                                                                                                                                                              (unaudited)


                                                                                               Three Months Ended
                                                                                          ------------------

                                                                  Dec 28, 2013          Sept 28, 2013             June 29, 2013                               Mar 30, 2013                     Dec 31, 2012          Sept 30, 2012          Jun 30, 2012          Mar 31, 2012
                                                                  ------------          -------------             -------------                               ------------                     ------------          -------------          ------------          ------------

    Revenue

                 Product                                                       $31,698                   $29,146                $23,354                                       $17,519                       $23,710                $18,700               $16,213               $10,893

                 Service                                                        11,389                     9,840                  9,055                                         8,294                         8,142                  6,994                 6,254                 5,809

                 Total Revenue                                                  43,087                    38,986                 32,409                                        25,813                        31,852                 25,694                22,467                16,702
                                                                                ------


    Cost of Revenue

                 Product                                                         7,646                     6,789                  6,944                                         4,724                         6,064                  4,524                 4,086                 3,365

                 Service                                                         1,170                       993                  1,911                                           653                           744                    557                   453                   492

                 Total Cost of Revenue                                           8,816                     7,782                  8,855                                         5,377                         6,808                  5,081                 4,539                 3,857
                                                                                 -----


    Gross Profit                                                                34,271                    31,204                 23,554                                        20,436                        25,044                 20,613                17,928                12,845
                                                                                ------                    ------                 ------                                        ------                        ------                 ------                ------                ------


    Product gross margin                                                            76%                       77%                    70%                                           73%                           74%                    76%                   75%                   69%

    Service gross margin                                                            90%                       90%                    79%                                           92%                           91%                    92%                   93%                   92%

    Gross Margin                                                                    80%                       80%                    73%                                           79%                           79%                    80%                   80%                   77%


    Operating Expenses

                 Research & Development                                         10,341                     8,958                 17,097                                         5,671                         5,406                  4,809                 3,570                 3,945

                 Sales & Marketing                                              18,004                    15,485                 26,114                                        12,421                        12,061                  9,963                 9,112                 8,223

                 General and Administrative                                      4,682                     4,696                 12,688                                         3,509                         3,904                  3,720                 2,735                 1,306

    Total Operating Expenses                                                    33,027                    29,139                 55,899                                        21,601                        21,371                 18,492                15,417                13,474
                                                                                ------                    ------                 ------                                        ------                        ------                 ------                ------                ------


    Income (Loss) From Operations                                                1,244                     2,065                (32,345)                                       (1,165)                        3,673                  2,121                 2,511                  (629)

    Operating Margin                                                                 3%                        5%                  -100%                                           -5%                           12%                     8%                   11%                   -4%


    Interest Income                                                                 60                        32                      1                                             2                             3                     55                     3                     3

    Other Expense, Net                                                             (17)                      (52)                   (18)                                           (7)                          (20)                   (17)                   (7)                  (26)

    Income before income tax
     (provision) benefit                                                         1,287                     2,045                (32,362)                                       (1,170)                        3,656                  2,159                 2,507                  (652)

    Income Tax (Provision) Benefit                                              (1,375)                     (502)                22,569                                           (29)                          (11)                   (37)                  (28)                  (63)
                                                                                ------                      ----                 ------                                           ---                           ---                    ---                   ---                   ---


    Net (Loss) Income                                                              (88)                    1,543                 (9,793)                                       (1,199)                        3,645                  2,122                 2,479                  (715)


    Accretion of preferred stock                                                     -                         -                   (503)                                         (585)                         (575)                  (564)                 (553)                 (544)

    Loss (earnings) distributable
     to preferred unit holders                                                       -                         -                    538                                           569                          (980)                  (497)                 (615)                  402

    Net (loss) income attributable
     to common stockholders                                                       $(88)                   $1,543                $(9,758)                                      $(1,215)                       $2,090                 $1,061                $1,311                 $(857)
                                                                                  ====                    ======                =======                                       =======                        ======                 ======                ======                 =====


    Net (loss) income per share attributable to common stockholders:

                 Basic                                                          $(0.00)                    $0.05                 $(0.51)                                       $(0.07)                        $0.12                  $0.06                 $0.08                $(0.05)
                                                                                 =====

                 Diluted                                                        $(0.00)                    $0.05                 $(0.51)                                       $(0.07)                        $0.12                  $0.06                 $0.08                $(0.05)
                                                                               =======


    Weighted average shares used in computing net (loss) income per
     share attributable to common stockholders:

                 Basic                                                          31,246                    30,933                 19,247                                        17,300                        17,300                 17,300                17,300                17,300
                                                                                 =====

                 Diluted                                                        31,246                    32,554                 19,247                                        17,300                        17,393                 17,307                17,300                17,300
                                                                                ======


                                                                                                                                                                                                          Gigamon Inc.

                                                                                                                                                                                  Impact of Revisions on Reported GAAP Statements of Operations

                                                                                                                                                                                 For the Three Months Ended June 29, 2013 and September 28, 2013

                                                                                                                                                                                    (In thousands, except per share amounts and percentages)

                                                                                                                                                                                                           (unaudited)


    Explanatory Note:
    The Company's financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for income taxes and inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these corrections were not material to any of its previously issued financial
     statements. As a result of these corrections, the Company has revised its results for the second and third quarters of fiscal 2013 as set forth below:


                                               Three Months Ended June 29, 2013                                                      Three Months Ended September 28, 2013
                                               --------------------------------                                                      -------------------------------------

                                                    As Reported                                Income Tax Adjustment                            Inventory Adjustment                                As Adjusted                                     As Reported                                Income Tax Adjustment                            Inventory Adjustment                As Adjusted
                                                    -----------                                ---------------------                            --------------------                                -----------                                     -----------                                ---------------------                            --------------------                -----------

    Revenue:

        Product                                                    $23,354                                                                                                                                         $23,354                                         $29,146                                                                                                                      $29,146

        Service                                                      9,055                                                                                                                                           9,055                                           9,840                                                                                                                        9,840
                                                                     -----                                                                                                                                           -----                                           -----                                                                                                                        -----

    Total revenue                                                   32,409                                               -                                               -                                          32,409                                          38,986                                               -                                               -                       38,986


    Cost of revenue:

        Product                                                      7,098                                                                                            (154)                                          6,944                                           6,744                                                                                              45                        6,789

        Service                                                      1,911                                                                                                                                           1,911                                             993                                                                                                                          993
                                                                     -----                                                                                                                                           -----                                             ---                                                                                                                          ---

    Cost of revenue                                                  9,009                                               -                                            (154)                                          8,855                                           7,737                                               -                                              45                        7,782
                                                                     -----                                             ---                                            ----                                           -----                                           -----                                             ---                                             ---                        -----

    Gross profit                                                    23,400                                               -                                             154                                          23,554                                          31,249                                               -                                             (45)                      31,204
                                                                    ------                                             ---                                             ---                                          ------                                          ------                                             ---                                             ---                       ------


    Product Gross
     Margin                                                             70%                                                                                                                                             70%                                             77%                                                                                                                          77%

    Service Gross
     Margin                                                             79%                                                                                                                                             79%                                             90%                                                                                                                          90%

    Total Gross Margin                                                  72%                                                                                                                                             73%                                             80%                                                                                                                          80%


    Operating expenses:

      Research and
       development                                                  17,097                                                                                                                                          17,097                                           8,958                                                                                                                        8,958

      Sales and marketing                                           26,114                                                                                                                                          26,114                                          15,485                                                                                                                       15,485

      General and
       administrative                                               12,688                                                                                                                                          12,688                                           4,696                                                                                                                        4,696

        Total operating
         expenses                                                   55,899                                               -                                               -                                          55,899                                          29,139                                               -                                               -                       29,139
                                                                    ------                                             ---                                             ---                                          ------                                          ------                                             ---                                             ---                       ------

    (Loss) income from
     operations                                                    (32,499)                                              -                                             154                                         (32,345)                                          2,110                                               -                                             (45)                       2,065
                                                                   -------                                             ---                                             ---                                         -------                                           -----                                             ---                                             ---                        -----

    Other income (expense):

      Interest income                                                    1                                                                                                                                               1                                              32                                                                                                                           32

      Other expense, net                                               (18)                                                                                                                                            (18)                                            (52)                                                                                                                         (52)
                                                                       ---                                                                                                                                             ---                                             ---                                                                                                                          ---

    (Loss) income
     before income
     taxes                                                         (32,516)                                              -                                             154                                         (32,362)                                          2,090                                               -                                             (45)                       2,045

    Income tax benefit
     (expense)                                                      24,571                                          (2,002)                                                                                         22,569                                            (704)                                            202                                                                         (502)
                                                                    ------                                          ------                                                                                          ------                                            ----                                             ---                                                                         ----

    Net (loss) income                                               (7,945)                                         (2,002)                                            154                                          (9,793)                                          1,386                                             202                                             (45)                       1,543
                                                                    ======                                          ======                                             ===                                          ======                                           =====                                             ===                                             ===                        =====

    Accretion of
     preferred stock                                                  (503)                                                                                                                                           (503)                                              -                                                                                                                            -

    (Earnings) loss
     attributable to
     preferred stock
     holders                                                           538                                                                                                                                             538                                               -                                                                                                                            -

    Net (loss) income
     to common stock
     holders                                                       $(7,910)                                        $(2,002)                                           $154                                         $(9,758)                                         $1,386                                            $202                                            $(45)                      $1,543
                                                                   =======                                         =======                                            ====                                         =======                                          ======                                            ====                                            ====                       ======


    Net (loss) income per share attributable to common
     stockholders:

      Basic                                                         $(0.41)                                                                                                                                         $(0.51)                                          $0.04                                                                                                                        $0.05
                                                                    ======                                                                                                                                          ======                                           =====                                                                                                                        =====

      Diluted                                                       $(0.41)                                                                                                                                         $(0.51)                                          $0.04                                                                                                                        $0.05
                                                                    ======                                                                                                                                          ======                                           =====                                                                                                                        =====

    Weighted-average number of shares used in per share
     amounts:

      Basic                                                         19,247                                                                                                                                          19,247                                          30,933                                                                                                                       30,933
                                                                    ======                                                                                                                                          ======                                          ======                                                                                                                       ======

      Diluted                                                       19,247                                                                                                                                          19,247                                          32,554                                                                                                                       32,554
                                                                    ======                                                                                                                                          ======                                          ======                                                                                                                       ======


                                                                                                                                       Gigamon Inc.

                                                                                                                    Non-GAAP Quarterly Trended Statements of Operations

                                                                                                                   (In thousands, except per share data and percentages)

                                                                                                                                        (unaudited)


                                                                        Three Months Ended
                                                                     ------------------

                                            Dec 28, 2013          Sept 28, 2013             June 29, 2013                               Mar 30, 2013                     Dec 31, 2012          Sept 30, 2012          Jun 30, 2012         Mar 31, 2012
                                            ------------          -------------             -------------                               ------------                     ------------          -------------          ------------         ------------



    Revenue:

    Product                                              $31,698                   $29,146                $23,354                                      $17,519                        $23,710                $18,700              $16,213               $10,893

    Services                                              11,389                     9,840                  9,055                                        8,294                          8,142                  6,994                6,254                 5,809

    Total revenue                                         43,087                    38,986                 32,409                                       25,813                         31,852                 25,694               22,467                16,702

    Cost of revenue:

    Product                                                7,431                     6,660                  4,992                                        4,712                          6,055                  4,491                4,084                 3,365

    Services                                                 936                       782                    819                                          649                            734                    458                  453                   492

    Total cost of revenue                                  8,367                     7,442                  5,811                                        5,361                          6,789                  4,949                4,537                 3,857


    Gross profit                                          34,720                    31,544                 26,598                                       20,452                         25,063                 20,745               17,930                12,845
                                                          ------                    ------                 ------                                       ------                         ------                 ------               ------                ------


    Product Gross Margin                                      77%                       77%                    79%                                          73%                            74%                    76%                  75%                   69%

    Services Gross Margin                                     92%                       92%                    91%                                          92%                            91%                    93%                  93%                   92%

    Gross margin                                              81%                       81%                    82%                                          79%                            79%                    81%                  80%                   77%


    Research and development                               7,721                     6,490                  5,840                                        5,361                          5,224                  4,481                3,538                 3,945

    Sales and marketing                                   15,398                    12,750                 12,860                                       11,991                         11,727                  9,490                9,026                 8,223

    General and administrative                             3,171                     3,172                  3,175                                        2,672                          3,169                  2,960                2,219                 1,306

    Total operating expenses                              26,290                    22,412                 21,875                                       20,024                         20,120                 16,931               14,783                13,474

    Income from operations                                 8,430                     9,132                  4,723                                          428                          4,943                  3,814                3,147                  (629)

    Operating margin                                          20%                       23%                    15%                                           2%                            16%                    15%                  14%                   -4%


    Interest income                                           60                        32                      1                                            2                              3                     55                    3                     3

    Other expense, net                                       (17)                      (52)                   (18)                                          (7)                           (20)                   (17)                  (7)                  (26)

    Income before provision for income
     taxes                                                 8,473                     9,112                  4,706                                          423                          4,926                  3,852                3,143                  (652)

    Income tax provision                                  (2,503)                   (3,374)                  (915)                                         (29)                           (11)                   (37)                 (28)                  (63)

    Net income                                            $5,970                    $5,738                 $3,791                                         $394                         $4,915                 $3,815               $3,115                 $(715)
                                                          ======                    ======                 ======                                         ====                         ======                 ======               ======                 =====




    Basic EPS                                              $0.19                     $0.19                  $0.20                                        $0.02                          $0.28                  $0.22                $0.18                $(0.04)
                                                           =====                     =====                  =====                                        =====                          =====                  =====                =====                ======

    Diluted EPS                                            $0.18                     $0.18                  $0.14                                        $0.02                          $0.28                  $0.22                $0.18                $(0.04)
                                                           =====                     =====                  =====                                        =====                          =====                  =====                =====                ======


    Weighted Average Shares for Basic EPS                 31,246                    30,933                 19,247                                       17,300                         17,300                 17,300               17,300                17,300
                                                          ======                    ======                 ======                                       ======                         ======                 ======               ======                ======

    Weighted Average Shares for Diluted EPS               33,346                    32,777                 27,456                                       17,883                         17,607                 17,541               17,413                17,300
                                                          ======                    ======                 ======                                       ======                         ======                 ======               ======                ======


                                                                                                                                                          Gigamon Inc.

                                                                                                                                Impact of Revisions on Reported Non-GAAP Statements of Operations

                                                                                                                                 For the Three Months Ended June 29, 2013 and September 28, 2013

                                                                                                                                    (In thousands, except per share amounts and percentages)

                                                                                                                                                           (unaudited)


    Explanatory Note:
    The Company's financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these
     corrections were not material to any of its previously reported Non-GAAP financial statements. As a result of these corrections, the Company has  revised its  Non-GAAP results  for the second and third quarters of fiscal 2013 as set forth below:


                                               Three Months Ended June 29, 2013                                                Three Months Ended September 28, 2013
                                               --------------------------------                                                -------------------------------------

                                                    As Reported                                 Inventory Adjustment                                As Adjusted                                     As Reported                                 Inventory Adjustment                       As Adjusted
                                                    -----------                                 --------------------                                -----------                                     -----------                                 --------------------                       -----------

    Revenue:

        Product                                                    $23,354                                                                                         $23,354                                         $29,146                                                                             $29,146

        Service                                                      9,055                                                                                           9,055                                           9,840                                                                               9,840
                                                                     -----                                                                                           -----                                           -----                                                                               -----

    Total revenue                                                   32,409                                               -                                          32,409                                          38,986                                               -                              38,986


    Cost of revenue:

        Product                                                      5,146                                            (154)                                          4,992                                           6,615                                              45                               6,660

        Service                                                        819                                                                                             819                                             782                                                                                 782
                                                                       ---                                                                                             ---                                             ---                                                                                 ---

    Cost of revenue                                                  5,965                                            (154)                                          5,811                                           7,397                                              45                               7,442
                                                                     -----                                            ----                                           -----                                           -----                                             ---                               -----

    Gross profit                                                    26,444                                             154                                          26,598                                          31,589                                             (45)                             31,544
                                                                    ------                                             ---                                          ------                                          ------                                             ---                              ------


    Product Gross Margin                                                78%                                                                                             79%                                             77%                                                                                 77%

    Service Gross Margin                                                91%                                                                                             91%                                             92%                                                                                 92%

    Total Gross Margin                                                  82%                                                                                             82%                                             81%                                                                                 81%


    Operating expenses:

      Research and
       development                                                   5,840                                                                                           5,840                                           6,490                                                                               6,490

      Sales and marketing                                           12,860                                                                                          12,860                                          12,750                                                                              12,750

      General and
       administrative                                                3,175                                                                                           3,175                                           3,172                                                                               3,172

        Total operating
         expenses                                                   21,875                                               -                                          21,875                                          22,412                                               -                              22,412
                                                                    ------                                             ---                                          ------                                          ------                                             ---                              ------

    Income (loss) from
     operations                                                      4,569                                             154                                           4,723                                           9,177                                             (45)                              9,132
                                                                     -----                                             ---                                           -----                                           -----                                             ---                               -----

    Other income (expense):

      Interest income                                                    1                                                                                               1                                              32                                                                                  32

      Other expense, net                                               (18)                                                                                            (18)                                            (52)                                                                                (52)
                                                                       ---                                                                                             ---                                             ---                                                                                 ---

    Income (Loss) before
     income taxes                                                    4,552                                             154                                           4,706                                           9,157                                             (45)                              9,112

    Income tax expense                                                (915)                                                                                           (915)                                         (3,374)                                                                             (3,374)
                                                                      ----                                                                                            ----                                          ------                                                                              ------

    Net income (loss)                                                3,637                                             154                                           3,791                                           5,783                                             (45)                              5,738
                                                                     =====                                             ===                                           =====                                           =====                                             ===                               =====

    Accretion of
     preferred stock                                                     -                                                                                               -                                               -                                                                                   -

    (Earnings) loss
     attributable to
     preferred stock
     holders                                                             -                                                                                               -                                               -                                                                                   -

    Net income (loss) to
     common stock
     holders                                                        $3,637                                            $154                                          $3,791                                          $5,783                                            $(45)                             $5,738
                                                                    ======                                            ====                                          ======                                          ======                                            ====                              ======


    Net income per share attributable to common
     stockholders:

      Basic                                                          $0.19                                                                                           $0.20                                           $0.19                                                                               $0.19
                                                                     =====                                                                                           =====                                           =====                                                                               =====

      Diluted                                                        $0.13                                                                                           $0.14                                           $0.18                                                                               $0.18
                                                                     =====                                                                                           =====                                           =====                                                                               =====

    Weighted-average number of shares used in per share
     amounts:

      Basic                                                         19,247                                                                                          19,247                                          30,933                                                                              30,933
                                                                    ======                                                                                          ======                                          ======                                                                              ======

      Diluted                                                       27,456                                                                                          27,456                                          32,777                                                                              32,777
                                                                    ======                                                                                          ======                                          ======                                                                              ======

SOURCE Gigamon Inc.