EX-99.2 5 f53007exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
UNAUDITED PRO FORMA FINANCIAL DATA
On July 8, 2009, Finisar Corporation (“Finisar”) entered into an Asset Purchase Agreement with JDS Uniphase Corporation (“JDSU”), pursuant to which Finisar agreed to sell to JDSU all of the assets used exclusively in its Network Tools business (other than accounts receivable) and JDSU agreed to assume certain related liabilities of the Network Tools business for a cash purchase price of approximately $40.6 million (the “Sale Transaction”). The Sale Transaction closed on July 15, 2009. The unaudited pro forma condensed balance sheet as of April 30, 2009 and unaudited pro forma condensed statement of income for the twelve months ended April 30, 2009 set forth below give effect to the Sale Transaction, as if such transaction had been consummated on the date or at the beginning of the period indicated.
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
                         
            Sale of Network        
            Tools Division        
    Historical     Adjustments     Pro Forma  
    (audited)                  
ASSETS
                       
Current assets:
                       
Cash and cash equivalents
  $ 37,129     $ 40,600 (1)   $ 77,729  
Short-term available-for-sale investments
    92             92  
Accounts receivable, net
    81,820             81,820  
Accounts receivable, other
    10,033             10,033  
Inventories
    112,300       (4,536 )(2)     107,764  
Prepaid expenses
    7,122             7,122  
 
                 
Total current assets
    248,496       36,064       284,560  
Property, plant and improvements, net
    84,040       (1,391 )(2)     82,649  
Purchased technology, net
    16,663       (204 )(2)     16,459  
Other intangible assets, net
    14,316       (888 )(2)     13,428  
Minority investments
    14,289             14,289  
Other assets
    2,897             2,897  
 
                   
Total assets
  $ 380,701     $ 33,581       414,282  
 
                 
 
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
                       
Accounts payable
  $ 48,421     $     $ 48,421  
Accrued compensation
    11,428       (755 )(2)     10,673  
Other accrued liabilities
    30,713             30,713  
Deferred revenue
    4,663       (2,981 )(2)     1,682  
Current portion of long-term debt
    6,107             6,107  
Non-cancelable purchase obligations
    2,965       (673 )(2)     2,292  
 
                 
Total current liabilities
    104,297       (4,409 )     99,888  
Long-term liabilities:
                       
Convertible subordinated notes
    50,000             50,000  
Convertible senior subordinated notes
    92,000             92,000  
Long-term debt, net of current portion
    15,305             15,305  
Other non-current liabilities
    3,161       (650 )(2)     2,511  
Deferred income taxes
    1,149             1,149  
 
                 
Total long-term liabilities
    161,615       (650 )     160,965  
Stockholders’ equity:
                       
Common stock
    477             477  
Additional paid-in capital
    1,811,298             1,811,298  
Accumulated other comprehensive income
    2,662             2,662  
Accumulated deficit
    (1,699,648 )     38,640 (3)     (1,661,008 )
 
                 
Total stockholders’ equity
    114,789       38,640       153,429  
 
                 
Total liabilities and stockholders’ equity
  $ 380,701     $ 33,581     $ 414,282  
 
                 
 
(1)   Gross proceeds from the sale of the Network Tools Division.
 
(2)   Assets and liabilities disposed of in the sale of the Network Tools Division.
 
(3)   Estimated gain on the sale of the Network Tools Division.


 

UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
                         
            Sale of Network        
            Tools Division        
    Historical     Adjustments     Pro Forma  
    (audited)                  
Revenues
                       
Optical subsystems and components
  $ 497,058     $     $ 497,058  
Network test systems
    44,179       (44,179 )(1)      
 
                 
Total revenues
    541,237       (44,179 )     497,058  
Cost of revenues
    365,572       (13,476 )(1)     352,096  
Impairment of acquired developed technology
    1,248             1,248  
Amortization of acquired developed technology
    6,039       (1,132 )(1)     4,907  
 
                 
Gross profit
    168,378       (29,571 )(1)     138,807  
Gross margin
    31.1 %     66.9 %     27.9 %
Operating expenses:
                       
Research and development
    92,057       (11,921 )(1)     80,136  
Sales and marketing
    37,747       (10,017 )(1)     27,730  
General and administrative
    40,761       (4,942 )(1)     35,819  
Acquired in-process research and development
    10,500             10,500  
Amortization of purchased intangibles
    2,686       (542 )(1)     2,144  
Impairment of goodwill and intangible assets
    238,507             238,507  
 
                 
Total operating expenses
    422,258       (27,422 )(1)     394,836  
 
                 
Loss from operations
    (253,880 )     (2,149 )(1)     (256,029 )
Interest income
    1,762             1,762  
Interest expense
    (9,687 )           (9,687 )
Gain on debt extinguishment
    3,838             3,838  
Other income (expense), net
    (3,803 )           (3,803 )
 
                 
Loss before income taxes
    (261,770 )     (2,149 )     (263,919 )
Provision (benefit) for income taxes
    (6,962 )           (6,962 )
 
                 
Net income (loss)
  $ (254,808 )   $ (2,149 )(1)   $ (256,957 )
 
                 
 
                       
Net loss per share — basic and diluted
  $ (0.61 )           $ (0.61 )
 
                   
 
                       
Shares used in computing net loss per share — basic and diluted
    420,456               420,456  
 
(1)   Elimination of full year revenue, operating expenses and operating profit of the Network Tools Division assuming the sale had occurred at the beginning of the fiscal year.