8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 27, 2005

LSI LOGIC CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE	1-10317	94-2712976
(State or other jurisdiction of	(Commission File Number)	(IRS Employer
incorporation)		Identification No.)

1621 Barber Lane
Milpitas, California 95035
(Address of principal executive offices, including zip code)

(408) 433-8000
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

Item 2.02 Results of Operation and Financial Condition

On July 27, 2005, LSI Logic Corporation (referred to here as “LSI Logic” or the “Company”) issued a news release regarding its financial results for the fiscal quarter ended July 3, 2005. A copy of the news release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated by reference herein.

Use of Non-GAAP Financial Information

LSI Logic has referenced non-GAAP financial information in the news release. LSI Logic management believes that the results of operations excluding special items presented herein for the three-and six-month periods ended July 3, 2005 and July 4, 2004, and the three-month period ended April 3, 2005 provide useful information to investors regarding results of operations, as they exclude charges, expenses, gains, and losses that are not directly related to the ongoing business results and/or stem from purchase business combinations. These business results are used by management for evaluating historical performance in addition to being used for the Company’s forecasting and planning for future periods. Restructuring of operations, acquisition-related amortization including intangibles and non-cash deferred stock compensation and other special items are examples of charges that are not directly related to the Company’s ongoing business and/or stem from purchase business combinations. For a complete reconciliation of special items excluded from our results of operations for the three-and six-month periods ended July 3, 2005 and July 4, 2004, and the three-month period ended April 3, 2005, refer to the tables furnished in the news release attached as Exhibit 99.1.

Results of operations excluding special items for the periods presented are provided for illustrative purposes only and should be read in conjunction with the comparable information presented in accordance with generally accepted accounting principles in the United States and the Company’s most recent annual report on Form 10-K for the twelve months ended December 31, 2004.

Item 8.01 Other Events

The Company reported revenues of $481 million in the second quarter of 2005, a seven percent sequential increase compared to the revenues of $450 million reported in the first quarter of 2005 and a seven percent increase compared to the $448 million reported in the second quarter of 2004.

Second quarter net income was $25 million or six cents per diluted share. The second quarter 2005 results compare to first quarter 2005 net income of $5 million or one cent per diluted share. Second quarter 2004 net income was $7 million or two cents per diluted share.

The company generated $60 million in cash from operations, reduced its convertible debt by $150 million and ended the second quarter of 2005 with $782 million in cash and short-term investments.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit No.	Description
99.1	LSI Logic Corporation News Release issued July 27, 2005*

* Furnished, not filed

2

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LSI LOGIC CORPORATION, a Delaware corporation
By:	/s/ David G. Pursel
	David G. Pursel
	Vice President, General Counsel & Corporate Secretary

Date: July 27, 2005

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	LSI Logic Corporation News Release issued July 27, 2005*

* Furnished, not filed

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE	JULY 27, 2005
Investor Relations Contact:	Media Relations Contact:
Diana Matley	Tara Yingst
408-433-4365	408-433-7139
diana@lsil.com	tara@lsil.com
CC05-75

LSI LOGIC REPORTS STRONG Q2 REVENUE AND PROFIT GROWTH

Second Quarter News Release Summary

n Revenues of $481 million, up 7 percent sequentially.

n Revenues up 7 percent compared to Q2 2004.

n GAAP* net income of 6 cents per diluted share, compared to 2 cents in Q2 2004.

n Net income, excluding special items**, of 11 cents per diluted share, compared to 7 cents in Q2 2004.

n Gross margin expands to 44 percent.

n Generated positive operating cash flow for 13^th consecutive quarter.

Third Quarter Business Outlook

n Projected revenue of $470 million to $500 million.

n GAAP* net income range of 5 — 7 cents per diluted share.

n Net income, excluding special items**, in the range of 10 — 12 cents per diluted share.

* Generally Accepted Accounting Principles.

** Acquisition-related amortization, restructuring and other special items.

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LSI Logic Reports Q2 2005 Financial Results
July 27, 2005 Page 2 of 4

STORAGE COMPONENTS AND STORAGE SYSTEMS LEAD
LSI LOGIC Q2 REVENUE GROWTH

Milpitas, California — LSI Logic Corporation (NYSE: LSI) today reported second quarter 2005 revenues of $481 million, a 7 percent sequential increase compared to the $450 million reported in the first quarter of 2005, and a 7 percent increase compared to the $448 million reported in the second quarter of 2004.

Second quarter 2005 GAAP* net income improved to $25 million or 6 cents per diluted share compared to first quarter 2005 GAAP net income of $5 million or 1 cent per diluted share. Second quarter 2004 GAAP net income was $7 million or 2 cents per diluted share.

Second quarter 2005 net income, excluding special items**, increased to $45 million or 11 cents per diluted share compared to first quarter 2005 net income, excluding special items, of $25 million or 6 cents per diluted share. Excluding special items, second quarter 2004 net income was $28 million or 7 cents per diluted share.

“Increased customer demand for LSI Logic’s Storage Components and Storage Systems product offerings provided the momentum for LSI Logic to report a solid second quarter,” said Abhi Talwalkar, LSI Logic president and chief executive officer. “Storage Components, comprised of Storage ASICs, Storage Standard Products and RAID Storage Adapters, set the pace for the company with a record second quarter. Our Engenio storage systems subsidiary benefited from the successful introduction of its higher-end product line. Growth in Communications reflected stronger than anticipated demand from enterprise networking customers. In Consumer, we were pleased with the revenue strength in DoMiNo^®-based DVD-recorder and cable set-top box markets, as well as digital audio products, which was balanced by the seasonal decline in game console revenues.

“LSI Logic generated significant sequential and year-over-year revenue growth,” said Bryon Look, LSI Logic chief financial officer. “Our gross margins increased over the prior quarter. Profitability improved, both on a GAAP and excluding special items basis. We generated $60 million in cash from operations, reduced convertible debt by $150 million and ended the second quarter of 2005 with $782 million in cash and short-term investments.”

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LSI Logic Reports Q2 2005 Financial Results
July 27, 2005 Page 3 of 4

LSI Logic Third Quarter Business Outlook

	GAAP*	Special Items**	Excluding Special Items
Revenues	$470 million to $500 million		$470 million to $500 million
Gross Margin	43-44 percent		43-44 percent
Operating Expenses	$175 million to $179 million	Approximately $19 million**	$156 million to $160 million
Net Other Income/(Expense)	$(2) to $(3) million		$(2) to $(3) million
Tax Provision	$6.25 million		$6.25 million
Net Income Per Share	$0.05 to $0.07	Approximately $0.05	$0.10 to $0.12
Diluted Share Count	406 million		406 million

Capital spending is projected to be around $20 million in the third quarter, and approximately $60 million in total for 2005.

Third quarter depreciation and software amortization is expected to be approximately $23 million.

* Generally Accepted Accounting Principles

** Acquisition-related amortization, restructuring and other special items.

NOTE: The company’s financial guidance will be limited to the comments made on today’s public conference call and contained in the Third Quarter Business Outlook section of this news release.

LSI Logic Conference Call Information

LSI Logic will hold a conference call today at 2 p.m. PDT to discuss second quarter financial results and the third quarter business outlook. The number is 1-303-262-2052. Internet users can access the conference call by visiting http://www.lsilogic.com/investors. A replay of the call will be available today at approximately 4:30 p.m. PDT and will be available for 48 hours. The replay access numbers are 1-800-405-2236 within the U.S. and 1-303-590-3000 for all other locations, passcode 11034680#.

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LSI Logic Reports Q2 2005 Financial Results
July 27, 2005 Page 4 of 4

Safe Harbor for Forward-Looking Statements: This news release contains forward-looking statements, which include the following: projected revenues for the third quarter of 2005, projected GAAP net income for the third quarter of 2005, projected net income, excluding special items, for the third quarter of 2005, projected capital spending in the third quarter of 2005 and for the year, and expected third quarter of 2005 depreciation and software amortization. Forward-looking statements also include projections of gross margins, operating expenses, net other income/(expense), tax provisions, earnings per share and diluted share count. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI Logic’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: fluctuations in the timing and volumes of customer demand, the company’s ability to achieve revenue objectives, the company’s ability to meet financial targets and failure to execute on its financial plan, the company’s ability to generate positive operating cash flow, control operating expenses or drive sustained revenue growth, the company’s ability to leverage technology marketplace advantages and the availability of appropriate levels of manufacturing capacity. For additional information, readers are referred to the documents filed by LSI Logic with the SEC, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K, 10-Q and 8-K.

About LSI Logic

LSI Logic Corporation (NYSE: LSI) focuses on the design and production of high-performance semiconductors for Consumer, Communications and Storage applications that access, interconnect and store data, voice and video. LSI Logic engineers incorporate reusable, industry-standard intellectual property building blocks that serve as the heart of leading-edge systems. LSI Logic serves its global OEM, channel and distribution customers with standard-cell ASICs, Platform ASICs, standard products, host bus adapters, RAID controllers and software. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com.

# # #

Editor’s Notes:

1.	All LSI Logic news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsilogic.com.
2.	The LSI Logic logo design is a registered trademark of LSI Logic Corporation.
3.	All other brand or product names may be trademarks or registered trademarks of their respective companies.

LSI LOGIC CORPORATION

Consolidated Condensed Statements of Operations Excluding Special Items
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2005			2005			2004			2005			2004
Revenues	$	481,292		$	450,007		$	447,897		$	931,299		$	900,254
Cost of revenues		269,531			259,740			239,081			529,271			490,006
Gross profit		211,761			190,267			208,816			402,028			410,248
Research and development		99,659			99,237			110,098			198,896			219,039
Selling, general and administrative		59,872			58,140			62,750			118,012			123,908
Income from operations		52,230			32,890			35,968			85,120			67,301
Interest expense		(6,320	)		(6,710	)		(6,067	)		(13,030	)		(11,979	)
Interest income and other, net		5,062			5,390			3,674			10,452			9,488
Income before income taxes		50,972			31,570			33,575			82,542			64,810
Provision for income taxes		6,250			6,250			6,000			12,500			12,000
Net income excluding special items	$	44,722		$	25,320		$	27,575		$	70,042		$	52,810
Income per share excluding special items:
Basic	$	0.11		$	0.07		$	0.07		$	0.18		$	0.14
Diluted	$	0.11		$	0.06		$	0.07		$	0.18		$	0.14
Shares used in computing per share amounts:
Basic		389,088			387,664			383,522			388,371			382,571
Diluted		393,427			390,458			388,586			391,954			389,102

Statements of operations excluding special items are intended to present the Company’s operating results, excluding special items described below, for the periods presented.

During the three and six month periods ended June 30, 2005, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, and restructuring of operations and other items, net, and other special items. The other special items consisted of gains on certain equity securities, and gains associated with the repurchase of a portion of the Company’s Convertible Subordinated Notes.

During the three month period ended March 31, 2005, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, and restructuring of operations and other items, net.

During the three and six month periods ended June 30, 2004, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, restructuring of operations and other items, net, and other special items. The other special items consisted of gains on certain equity securities, offset in part by fees related to the proposed initial public offering and our separation from Engenio.

For the three month periods ended June 30, 2005, March 31, 2005 and June 30, 2004, the statements excluding special items are prepared using the Company’s calculated tax expense of $6,250, $6,250 and $6,000, respectively when excluding special items. For the six month periods ended June 30, 2005 and 2004, the statements excluding special items are prepared using the Company’s calculated tax expense of $12,500 and $12,000, respectively when excluding special items.

For the three month periods ended June 30, 2005, March 31, 2005 and June 30, 2004, 4,339, 2,794 and 5,064 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share excluding special items. For the six month periods ended June 30, 2005 and 2004, 3,583 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share excluding special items.

A reconciliation from net income excluding special items to the reported results is presented on the following page.

The format presented above is not intended to be in accordance with Generally Accepted Accounting Principles.

LSI LOGIC CORPORATION

Reconciliation of Net Income Excluding Special Items to GAAP Results
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2005			2005			2004			2005			2004
Net income excluding special items	$	44,722		$	25,320		$	27,575		$	70,042		$	52,810
Special items:
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation		(18,785	)		(19,068	)		(21,401	)		(37,853	)		(41,501	)
Restructuring of operations and other items, net		(7,156	)		(1,533	)		(3,029	)		(8,689	)		(2,431	)
Other special items		6,481			—			4,097			6,481			7,449
Total special items		(19,460	)		(20,601	)		(20,333	)		(40,061	)		(36,483	)
Net income	$	25,262		$	4,719		$	7,242		$	29,981		$	16,327
Basic income per share:
Net income excluding special items	$	0.11		$	0.07		$	0.07		$	0.18		$	0.14
Special items **		(0.05	)		(0.06	)		(0.05	)		(0.10	)		(0.10	)
Net income	$	0.06		$	0.01		$	0.02		$	0.08		$	0.04
Diluted income per share*:
Net income excluding special items	$	0.11		$	0.06		$	0.07		$	0.18		$	0.14
Special items **		(0.05	)		(0.05	)		(0.05	)		(0.10	)		(0.10	)
Net income	$	0.06		$	0.01		$	0.02		$	0.08		$	0.04
Shares used in computing per share amounts:
Basic		389,088			387,664			383,522			388,371			382,571
Diluted		393,427			390,458			388,586			391,954			389,102

*

For the three month periods ended June 30, 2005, March 31, 2005 and June 30, 2004, 4,339, 2,794 and 5,064 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share. For the six month periods ended June 30, 2005 and 2004, 3,583 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share.

**

This line item includes rounding adjustments.

LSI LOGIC CORPORATION

Consolidated Condensed Statements of Operations (GAAP)
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2005			2005			2004			2005			2004
Revenues	$	481,292		$	450,007		$	447,897		$	931,299		$	900,254
Cost of revenues		269,531			259,740			239,081			529,271			490,006
Gross profit		211,761			190,267			208,816			402,028			410,248
Research and development		99,659			99,237			110,098			198,896			219,039
Selling, general and administrative		59,872			58,140			63,757			118,012			124,915
Restructuring of operations and other items, net		7,156			1,533			3,029			8,689			2,431
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation *		18,785			19,068			21,401			37,853			41,501
Income from operations		26,289			12,289			10,531			38,578			22,362
Interest expense		(6,320	)		(6,710	)		(6,067	)		(13,030	)		(11,979	)
Interest income and other, net		11,543			5,390			8,778			16,933			17,944
Income before income taxes		31,512			10,969			13,242			42,481			28,327
Provision for income taxes		6,250			6,250			6,000			12,500			12,000
Net income	$	25,262		$	4,719		$	7,242		$	29,981		$	16,327
Income per share:
Basic	$	0.06		$	0.01		$	0.02		$	0.08		$	0.04
Diluted **	$	0.06		$	0.01		$	0.02		$	0.08		$	0.04
Shares used in computing per share amounts:
Basic		389,088			387,664			383,522			388,371			382,571
Diluted		393,427			390,458			388,586			391,954			389,102

* The amortization of acquisition related items including intangibles and non-cash deferred stock compensation for the three month period ended June 30, 2005 are comprised of the following items:

Amortization of intangibles	$	17,613
Amortization of non-cash deferred stock compensation		1,172
	$	18,785

** For the three month periods ended June 30, 2005, March 31, 2005 and June 30, 2004, 4,339, 2,794 and 5,064 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share. For the six month periods ended June 30, 2005 and 2004, 3,583 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share.

LSI LOGIC CORPORATION

Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)

	June 30,			March 31,			December 31,
	2005			2005			2004
Assets
Current assets:
Cash and short-term investments	$	782.0		$	865.9		$	814.6
Accounts receivable, net		284.9			259.5			272.1
Inventories		185.7			203.4			218.9
Prepaid expenses and other current assets		61.0			58.9			59.7
Total current assets		1,313.6			1,387.7			1,365.3
Property and equipment, net		288.5			301.6			311.9
Goodwill and other intangibles		1,038.7			1,058.2			1,081.6
Other assets		106.7			115.2			115.2
Total assets	$	2,747.5		$	2,862.7		$	2,874.0
Liabilities and Stockholders’ Equity
Current liabilities:
Other current liabilities	$	394.5		$	386.5		$	396.2
Current portion of long-term obligations		—			—			0.1
Total current liabilities		394.5			386.5			396.3
Long-term debt		626.0			779.8			781.9
Tax related liabilities and other		75.3			77.0			77.6
Total liabilities		1,095.8			1,243.3			1,255.8
Minority interest in subsidiary		0.2			0.3			0.3
Stockholders’ equity:
Common stock		2,990.1			2,980.8			2,973.4
Deferred stock compensation		(10.6	)		(13.6	)		(8.9	)
Accumulated deficit		(1,354.3	)		(1,379.6	)		(1,384.3	)
Accumulated other comprehensive income		26.3			31.5			37.7
Total stockholders’ equity		1,651.5			1,619.1			1,617.9
Total liabilities and stockholders’ equity	$	2,747.5		$	2,862.7		$	2,874.0

LSI LOGIC CORPORATION

Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2005			2005			2004			2005			2004
Operating Activities:
Net income	$	25,262		$	4,719		$	7,242		$	29,981		$	16,327
Adjustments:
Depreciation & amortization *		41,528			40,765			46,325			82,293			92,441
Amortization of non-cash deferred stock compensation		1,172			1,455			2,003			2,627			3,829
Non-cash restructuring and other items		501			849			4,156			1,350			6,385
Gain on sale and exchange of equity securities		(2,311	)		—			(5,104	)		(2,311	)		(8,104	)
Gain on repurchase of Convertible Subordinated Notes		(4,123	)		—			—			(4,123	)		—
Loss/(gain) on sales of property and equipment		51			(54	)		(836	)		(3	)		(3,937	)
Changes in deferred tax assets and liabilities		17			37			105			54			625
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable		(25,429	)		12,576			(41,612	)		(12,853	)		(56,980	)
Inventories		17,626			15,534			(5,511	)		33,160			(11,701	)
Prepaid expenses and other assets		(3,045	)		(5,115	)		(18,306	)		(8,160	)		(5,777	)
Accounts payable		7,088			(9,466	)		23,024			(2,378	)		10,263
Accrued and other liabilities		1,476			(1,969	)		16,600			(493	)		(5,178	)
Net cash provided by operating activities		59,813			59,331			28,086			119,144			38,193
Investing activities:
Purchases of debt securities available-for-sale		(150,207	)		(112,325	)		(225,316	)		(262,532	)		(454,756	)
Maturities and sales of debt securities available-for-sale		180,870			102,313			150,418			283,183			339,458
Purchases of equity securities		—			—			—			—			(2,250	)
Proceeds from sales of equity securities		3,871			—			10,518			3,871			10,518
Purchases of property, equipment and software		(10,987	)		(8,433	)		(13,661	)		(19,420	)		(25,218	)
Proceeds from sale of property and equipment		1,804			1,411			1,822			3,215			5,836
Decrease in non-current assets and deposits		—			—			11,880			—			39,633
Increase in non-current assets and deposits		—			—			(17	)		—			(40	)
Acquisitions of companies, net of cash acquired		—			—			(31,710	)		—			(36,487	)
Adjustment to goodwill acquired in a prior year for resolution of a pre-acquisition income tax contingency		1,870			5,792			4,462			7,662			4,462
Decrease in a payable for an acquisition of a company		—			—			(17,592	)		—			—
Net cash provided by/(used in) investing activities		27,221			(11,242	)		(109,196	)		15,979			(118,844	)
Financing activities:
Issuance of common stock		11,472			1,354			14,262			12,826			17,810
Repurchase of Convertible Subordinated Notes		(148,126	)		—			—			(148,126	)		—
Purchase of minority interest in subsidiary		—			—			(6,394	)		—			(7,453	)
Repayment of debt obligations		(32	)		(97	)		(94	)		(129	)		(216	)
Net cash (used in)/provided by financing activities		(136,686	)		1,257			7,774			(135,429	)		10,141
Effect of exchange rate changes on cash and cash equivalents		(3,626	)		(3,335	)		(1,675	)		(6,961	)		(769	)
(Decrease)/increase in cash and cash equivalents		(53,278	)		46,011			(75,011	)		(7,267	)		(71,279	)
Cash and cash equivalents at beginning of period		264,734			218,723			273,414			218,723			269,682
Cash and cash equivalents at end of period	$	211,456		$	264,734		$	198,403		$	211,456		$	198,403

* Depreciation of fixed assets, amortization of intangible assets, software, capitalized intellectual property, debt issuance costs and deferred gains on cancelled interest rate swaps.

LSI LOGIC CORPORATION

Selected Financial Information (GAAP)
(In millions, except where noted)
(Unaudited)

	Three Months Ended
	June 30,			March 31,			June 30,
	2005			2005			2004
Semiconductor revenues	$	362.4		$	343.6		$	335.6
Storage Systems revenues	$	118.9		$	106.4		$	112.3
Total revenues	$	481.3		$	450.0		$	447.9
Percentage change in revenues-qtr./qtr. (a)		7.0	%		7.2	%		-1.0	%
Percentage change in revenues-yr./yr. (b)		7.5	%		-0.5	%		10.0	%
Days sales outstanding		53			52			58
Days of inventory		62			70			79
Current ratio		3.3			3.6			3.7
Quick ratio		2.7			2.9			2.9
R&D as a percentage of revenues		20.7	%		22.1	%		24.6	%
SG&A as a percentage of revenues		12.4	%		12.9	%		14.2	%
Gross margin as a percentage of revenues		44.0	%		42.3	%		46.6	%
Employees (c)		4,342			4,307			4,846
Revenues per employee (in thousands) (d)	$	443.4		$	417.9		$	369.7
Diluted shares (in thousands)		393,427			390,458			388,586
Selected Cash Flow information
Purchases of property and equipment (e)	$	8.2		$	7.1		$	12.5
Depreciation / amortization (f)	$	22.3		$	22.2		$	24.8

(a)	Represents sequential quarter growth in revenues.
(b)	Represents growth in revenues in the quarter presented as compared to the same quarter of the previous year.
(c)	Actual number of employees at the end of each period presented.
(d)	Revenue per employee is calculated by annualizing revenue for each quarter presented and dividing it by the number of employees.
(e)	Excludes purchases of software.
(f)	Represents depreciation of fixed assets and amortization of software.