-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
RfyyNDXL5wWMhrnhRYE1YJfi1yJ/Wkm9/86oJXkBYNp1+4XrwQ+IWvvnQPY5QoC9
ld0B8M5UmPMvjX3Rp4VypA==
UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 8-K
CURRENT REPORT
Date of Report (Date of earliest event reported):
May 10, 2007
Adaptec, Inc.
691 S. Milpitas Blvd.
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(Exact name of registrant as specified in its charter)
Milpitas, California 95035
(Address of principal executive offices including zip code)
(408) 945-8600
N/A
(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:
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))
Item 2.02 Results of Operations and Financial Condition
On May 10, 2007, Adaptec, Inc. announced its financial results for the quarter ended March 31, 2007. A copy
of Adaptec's press release announcing these financial results is attached as Exhibit 99.1 to this Current Report on Form 8-K. To supplement its condensed consolidated financial statements in accordance with generally accepted
accounting principles (GAAP), the Company's earnings release contains non-GAAP financial measures that exclude certain expenses,
gains and losses. The Company believes that the use of non-GAAP financial measures provides useful information to investors to gain
an overall understanding of its current financial performance and its prospects for the future. Specifically, the Company believes the
non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that
the Company believes are not indicative of its core operating results. In addition, non-GAAP financial measures are used by
management for budgeting and forecasting as well as subsequently measuring the Company's performance, and the Company
believes that it is providing investors with financial measures that most closely align to its internal measurement processes. The
Company also believes, based on feedback provided to the Company during its earnings calls' Q&A sessions and discussions with
the investment community, that the non-GAAP financial measures it provides are necessary to allow the investment community to
construct their valuation models to better align its results and projections with its competitors and market sector, as there is significant
variability and unpredictability across companies with respect to certain expenses, gains and losses. The non-GAAP financial information is presented using consistent methodology from quarter-to-quarter and
year-to-year. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results. The non-GAAP financial measures presented by the Company may be different
than the non-GAAP financial measures presented by other companies. In addition, these non-GAAP financial measures are not based
on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP financial measures have limitations
in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with
GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the
corresponding GAAP financial measures. The Company excludes the following expenses, gains and losses from its non-GAAP financial measures, when
applicable: Stock-based compensation expense, including deferred compensation expense: Stock-based
compensation expense consists of expenses recorded under SFAS 123(R), "Share-Based Payment," in connection with
stock awards such as stock options, restricted stock awards and restricted stock units granted under the Company's equity incentive
plans and shares issued pursuant to the Company's employee stock purchase plan. Deferred compensation expense consists of
expenses related to stock options assumed by the Company in connection with acquisitions that it completed prior to its adoption of
SFAS 123(R) in the first quarter of fiscal 2007. The Company excludes stock-based compensation expense, including deferred
compensation expense, from non-GAAP financial measures because it is a non-cash measurement that does not reflect the Company's
ongoing business and because the Company believes that investors want to understand the impact on the Company of the adoption of
SFAS 123(R); the Company believes that the provision of non-GAAP information that excludes stock-based compensation improves
the ability of investors to compare its period-over-period operating results, as there is significant variability and unpredictability across
companies with respect to this expense. Management incentive program: The Company excludes expenses associated with the
management incentive program, which were limited cash payments made to selected members of management of an acquired
company, as these payments were instituted as a component of the acquisition process and do not reflect the Company's ongoing
business. Amortization of acquisition-related intangible assets: Amortization of acquisition-related
intangible assets primarily relate to core and existing technologies, patents, trade name and customer relationships that were acquired
from prior acquisitions. The Company excludes the amortization of acquisition-related intangible assets because it does not reflect the
Company's ongoing business and it does not have a direct correlation to the operation of the Company's business. In addition, in
accordance with GAAP, the Company generally recognizes expenses for internally-developed intangible assets as they are incurred,
notwithstanding the potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also
in accordance with GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an
expense over the useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology,
which is expensed immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of
comparability between the financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly,
the Company believes it is useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that
excludes the amortization of acquired intangibles in order to enhance the period-over-period comparison of its operating results, as
there is significant variability and unpredictability across companies with respect to this expense. Restructuring and other charges, including impairment of goodwill: Restructuring charges
primarily relate to activities engaged in by the Company's management to simplify its infrastructure. Other charges primarily relate to
the impairment of acquisition-related intangible assets from prior acquisitions long-lived assets from the sale of the Company's
Singapore manufacturing assets, buildings and improvements, and inventory, and a write-down of a minority investment. Restructuring
and other charges, including impairment of goodwill, are excluded from non-GAAP financial measures because they are not considered
core operating activities and the occurrence of such costs is infrequent. Although the Company has engaged in various restructuring
activities over the past several years, each has been a discrete, extraordinary event based on a unique set of business objectives. The
Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company
believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures, as it enhances the ability of investors
to compare the Company's period-over-period operating results. In addition, the Company excludes other charges, including the
impairment of goodwill, from non-GAAP financial measures because they are a non-cash measurement that does not reflect the
Company's ongoing business. Loss on 3% convertible notes: The loss on the Company's 3% convertible notes relates to
repurchases of these notes in the open market. This is excluded from non-GAAP financial measures because the occurrence of such
costs are infrequent, which would affect the ability of investors to compare the Company's period-over-period operating results, and
because the Company does not believe that this activity is reflective of gains and losses customarily incurred in the management of its
cash resources. Income taxes: Incremental income taxes associated with certain non-GAAP items.
The information in this report shall not be treated as "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly stated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
The exhibit listed below is furnished pursuant to Item 2.02 hereof and shall not be deemed "filed" under the Securities Exchange Act of 1934.
|
Press release issued by Adaptec, Inc. on May 10, 2007 |
2
SIGNATURE
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.
Adaptec, Inc.
By: /s/ Christopher G. O'Meara
Christopher G. O'Meara Vice President and Chief Financial Officer |
May 10, 2007
3
EXHIBIT INDEX
|
Description of Exhibit |
|
Press release issued by Adaptec, Inc. on May 10, 2007. Also provided in PDF format as a courtesy. |
__________
* This exhibit is intended to be furnished and shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934.
4
Exhibit 99.1 FOR IMMEDIATE RELEASE Editorial Contact Investor Contact ADAPTEC REPORTS FOURTH QUARTER AND FISCAL 2007 RESULTS Q4 Net Revenue from Continuing Operations: $51.9 Million Fiscal Year 2007 Revenue from Continuing Operations: $255.2 Million MILPITAS, Calif. - May 10, 2007 - Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, today reported its
financial results for the fourth quarter and fiscal year for 2007, which ended on March 31, 2007. Net revenue from continuing operations for the Company's fourth quarter of fiscal 2007 was $51.9 million, compared with $81.1
million for the fourth quarter of fiscal 2006. Loss from continuing operations, computed on a generally accepted accounting principles
(GAAP) basis, for the fourth quarter of fiscal 2007 was ($4.2) million or ($0.04) per share, compared with a loss from continuing
operations of ($15.8) million or ($0.14) per share for the fourth quarter of fiscal 2006. GAAP net loss for the fourth quarter of fiscal 2007 was ($3.3) million or ($0.03) per share, compared with a net loss of ($3.4) million
or ($0.03) per share for the fourth quarter of fiscal 2006. Non-GAAP loss from continuing operations for the fourth quarter of fiscal 2007 was ($2.7) million or ($0.02) per share, compared
with a non-GAAP income from continuing operations of $4.0 million or $0.03 per share for the fourth quarter of fiscal 2006. Net revenues from continuing operations for the Company's fiscal year ended March 31, 2007 were $255.2 million, compared with
$344.1 million for the fiscal year ended March 31, 2006. Income from continuing operations, computed on a GAAP basis, for the fiscal
year ended March 31, 2007 was $24.8 million or $0.20 per share, compared with a loss from continuing operations of ($135.8) million,
or ($1.20) per share, for the fiscal year ended March 31, 2006. GAAP net income for the fiscal year ended March 31, 2007, was $30.8 million, or $0.25 per share, which includes $61.3 million of discrete
tax benefits primarily related to settlements with the IRS, compared with net loss of ($148.4) million, or ($1.31) per share, for the fiscal year
ended March 31, 2006, which includes $90.6 million of goodwill impairment. Non-GAAP loss from continuing operations for the fiscal year ended March 31, 2007, was ($5.9) million, or ($0.05) per share,
compared with non-GAAP loss from continuing operations of ($9.0) million, or ($0.08) per share, for the fiscal year ended March 31,
2006. "While we have demonstrated improved execution on several fronts such as supply chain
operations and the development and delivery of new products, we are disappointed with the
company's current operating model as well as the near-term outlook which remains challenging, due to the transition from parallel SCSI
to serial technologies," said S. "Sundi" Sundaresh, president and CEO of Adaptec. "We believe that by executing
on Adaptec's future growth strategy, we will be able to position the company for long term success." A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables.
Conference Call
Idone Media Consultants
631-472-0342
denise@idonemedia.com
Adaptec, Inc.
408-957-1630
mary_camarata@adaptec.com
The Adaptec fourth quarter fiscal 2007 earnings conference call is scheduled for 1:45 p.m. Pacific Time on May 10, 2007. Individuals may participate via webcast by visiting www.adaptec.com/investor 15 minutes prior to the call. A telephone replay of the teleconference will be available through May 24, 2007 by calling (888) 203-1112 in the U.S. or (719) 457-0820 internationally and referencing reservation number 2004568.
About Adaptec
Adaptec, Inc. (NASDAQ: ADPT) provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. Adaptec's software and hardware-based solutions are delivered through leading Original Equipment Manufacturers (OEMs) and channel partners to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses worldwide. More information is available at
www.adaptec.com.Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements are statements regarding future events or the future performance of Adaptec, and include expectations regarding the effects of the pursuit of the Company's growth strategy. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward- looking statements. These risks include: identifying and completing transactions with attractive acquisition targets and challenges inherent in integrating acquired businesses; achieving necessary support from the contract manufacturers to whom we have outsourced manufacturing, assembly and packaging of our products; retaining key management; Adaptec's ability to launch new software products; difficulty in forecasting the volume and timing of customer orders; reduced demand in the server, network storage and desktop computer markets; our target markets' failure to accept, or delay in accepting, network storage and other advanced storage solutions, including our SAS, SATA and iSCSI lines of products; decline in consumer acceptance of our current products; the timing and volume of orders by OEM customers for storage products; our ability to control and manage costs associated with the delivery of new products; and the adverse effects of the intense competition we face in our business. For a more complete discussion of risks related to our business, reference is made to the section titled "Risk Factors" included in our Quarterly Report on Form 10-Q for the Fiscal Quarter ended December 31, 2006, on file with the Securities and Exchange Commission. Adaptec assumes no obligation to update any forward looking information that is included in this release.
Adaptec is a registered trademark in the United States and other countries. Other product and company names are trademarks or registered trademarks of their respective owners.
###
Adaptec, Inc. To supplement its condensed consolidated financial statements in accordance with
generally accepted accounting principles (GAAP), the Company's earnings release contains non-GAAP financial measures that exclude
certain expenses, gains and losses. The Company believes that the use of non-GAAP financial measures provides useful information
to investors to gain an overall understanding of its current financial performance and its prospects for the future. Specifically, the
Company believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses,
gains and losses that the Company believes are not indicative of its core operating results. In addition, non-GAAP financial measures
are used by management for budgeting and forecasting as well as subsequently measuring the Company's performance, and the
Company believes that it is providing investors with financial measures that most closely align to its internal measurement processes.
The Company also believes, based on feedback provided to the Company during its earnings calls' Q&A sessions and discussions
with the investment community, that the non-GAAP financial measures it provides are necessary to allow the investment community to
construct their valuation models to better align its results and projections with its competitors and market sector, as there is significant
variability and unpredictability across companies with respect to certain expenses, gains and losses. The non-GAAP financial information is presented using consistent methodology from quarter-to-quarter and
year-to-year. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be
considered a substitute for or superior to GAAP results. The non-GAAP financial measures presented by the Company may be different
than the non-GAAP financial measures presented by other companies. In addition, these non-GAAP financial measures are not based
on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP financial measures have limitations
in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with
GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the
corresponding GAAP financial measures. The Company excludes the following expenses, gains and losses from its non-GAAP financial measures, when
applicable: Stock-based compensation expense, including deferred compensation expense: Stock-based
compensation expense consists of expenses recorded under SFAS 123(R), "Share-Based Payment," in connection
with stock awards such as stock options, restricted stock awards and restricted stock units granted under the Company's equity
incentive plans and shares issued pursuant to the Company's employee stock purchase plan. Deferred compensation expense consists
of expenses related to stock options assumed by the Company in connection with acquisitions that it completed prior to its adoption of
SFAS 123(R) in the first quarter of fiscal 2007. The Company excludes stock-based compensation expense, including deferred
compensation expense, from non-GAAP financial measures because it is a non-cash measurement that does not reflect the Company's
ongoing business and because the Company believes that investors want to understand the impact on the Company of the adoption of
SFAS 123(R); the Company believes that the provision of non-GAAP information that excludes stock-based compensation improves
the ability of investors to compare its period-over-period operating results, as there is significant variability and unpredictability across
companies with respect to this expense. Management incentive program: The Company excludes expenses associated with the
management incentive program, which were limited cash payments made to selected members of management of an acquired
company, as these payments were instituted as a component of the acquisition process and do not reflect the Company's ongoing
business. Amortization of acquisition-related intangible assets: Amortization of acquisition-related intangible
assets primarily relate to core and existing technologies, patents, trade name and customer relationships that were acquired from prior
acquisitions. The Company excludes the amortization of acquisition-related intangible assets because it does not reflect the Company's
ongoing business and it does not have a direct correlation to the operation of the Company's business. In addition, in accordance with
GAAP, the Company generally recognizes expenses for internally-developed intangible assets as they are incurred, notwithstanding the
potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also in accordance with
GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an expense over the
useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology, which is expensed
immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of comparability between the
financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly, the Company believes it is
useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that excludes the amortization of
acquired intangibles in order to enhance the period-over-period comparison of its operating results, as there is significant variability and
unpredictability across companies with respect to this expense. Restructuring and other charges, including impairment of goodwill: Restructuring charges primarily
relate to activities engaged in by the Company's management to simplify its infrastructure. Other charges primarily relate to the
impairment of acquisition-related intangible assets from prior acquisitions and long-lived assets from the sale of the Company's
Singapore manufacturing assets, buildings and improvements, and inventory, and a write-down of a minority investment. Restructuring
and other charges, including impairment of goodwill, are excluded from non-GAAP financial measures because they are not considered
core operating activities and the occurrence of such costs is infrequent. Although the Company has engaged in various restructuring
activities over the past several years, each has been a discrete, extraordinary event based on a unique set of business objectives. The
Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company
believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures, as it enhances the ability of investors
to compare the Company's period-over-period operating results. In addition, the Company excludes other charges, including the
impairment of goodwill, from non-GAAP financial measures because they are a non-cash measurement that does not reflect the
Company's ongoing business. Loss on 3% convertible notes: The loss on the Company's 3% convertible notes relates to
repurchases of these notes in the open market. This is excluded from non-GAAP financial measures because the occurrence of such
costs are infrequent, which would affect the ability of investors to compare the Company's period-over-period operating results, and
because the Company does not believe that this activity is reflective of gains and losses customarily incurred in the management of its
cash resources. Income taxes: Incremental income taxes associated with certain non-GAAP items.
GAAP Condensed Consolidated Statements of Operations
(unaudited)
Three-Month Period Ended Twelve-Month Period Ended
---------------------------------------------------- ----------------------------------
March 31, December 31, March 31, March 31, March 31,
2007 2006 2006 2007 2006
---------------- ---------------- ---------------- ---------------- ----------------
(in thousands, except per share amounts)
Net revenues $ 51,934 $ 60,650 $ 81,094 $ 255,208 $ 344,142
Cost of revenues 34,356 45,807 51,588 173,974 230,249
---------------- ---------------- ---------------- ---------------- ----------------
Gross profit 17,578 14,843 29,506 81,234 113,893
---------------- ---------------- ---------------- ---------------- ----------------
Operating expenses:
Research and development 12,788 12,931 15,953 56,573 68,179
Selling, marketing
and administrative 14,892 15,346 16,619 61,325 72,376
Amortization of acquisition-
related intangible assets 1,470 1,470 1,689 5,996 9,234
Restructuring charges -- (385) 7,325 3,711 10,430
Goodwill impairment -- -- -- -- 90,602
Other charges 758 -- 10,131 14,700 11,603
---------------- ---------------- ---------------- ---------------- ----------------
Total operating expenses 29,908 29,362 51,717 142,305 262,424
---------------- ---------------- ---------------- ---------------- ----------------
Loss from continuing operations (12,330) (14,519) (22,211) (61,071) (148,531)
Interest and other income 7,290 6,600 5,011 25,618 17,621
Interest expense (856) (790) (716) (3,405) (3,314)
---------------- ---------------- ---------------- ---------------- ----------------
Loss from continuing operations
before income taxes (5,896) (8,709) (17,916) (38,858) (134,224)
Provision for (benefit
from) income taxes (1,732) (13,786) (2,104) (63,704) 1,608
---------------- ---------------- ---------------- ---------------- ----------------
Income (loss) from
continuing operations (4,164) 5,077 (15,812) 24,846 (135,832)
---------------- ---------------- ---------------- ---------------- ----------------
Discontinued operations:
Loss from discontinued
operations, net of taxes (678) -- (864) (546) (22,410)
Income from disposal of
discontinued operations,
net of taxes 1,512 1,301 13,284 6,543 9,810
---------------- ---------------- ---------------- ---------------- ----------------
Income (loss) from
discontinued operations 834 1,301 12,420 5,997 (12,600)
---------------- ---------------- ---------------- ---------------- ----------------
Net income (loss) $ (3,330) $ 6,378 $ (3,392) $ 30,843 $ (148,432)
================ ================ ================ ================ ================
Income (loss) per common share:
Basic
Continuing operations $ (0.04) $ 0.04 $ (0.14) $ 0.21 $ (1.20)
Discontinued operations $ 0.01 $ 0.01 $ 0.11 $ 0.05 $ (0.11)
Net income (loss) $ (0.03) $ 0.05 $ (0.03) $ 0.26 $ (1.31)
Diluted
Continuing operations $ (0.04) $ 0.04 $ (0.14) $ 0.20 $ (1.20)
Discontinued operations $ 0.01 $ 0.01 $ 0.11 $ 0.04 $ (0.11)
Net income (loss) $ (0.03) $ 0.05 $ (0.03) $ 0.25 $ (1.31)
Shares used in computing
income (loss) per share:
Basic 117,516 116,959 114,678 116,602 113,405
Diluted 117,516 137,330 114,678 136,690 113,405
Adaptec, Inc.
Adaptec, Inc.
QBD=C&1KEC#8FW5.;&4N/'J"Q[;A[D@LYB#RKGOKG
M`!,;VPU8XA5;FQRXER
Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited)
Three-Month Period Ended Twelve-Month Period Ended
---------------------------------------------------- ----------------------------------
March 31, December 31, March 31, March 31, March 31,
2007 2006 2006 2007 2006
---------------- ---------------- ---------------- ---------------- ----------------
(in thousands)
GAAP income (loss) from
continuing operations $ (4,164) $ 5,077 $ (15,812) $ 24,846 $ (135,832)
Stock-based compensation expense 1,667 2,240 -- 8,473 --
Deferred compensation expense -- -- 97 -- 1,249
Management incentive program -- -- 481 799 3,789
Amortization of acquisition-
related intangible assets 1,470 1,470 1,689 5,996 9,234
Restructuring charges -- (385) 7,325 3,711 10,430
Goodwill impairment -- -- -- -- 90,602
Other charges 758 -- 10,131 14,700 11,603
Loss (gain) on 3% convertible notes -- -- (22) -- 79
Provision for (benefit
from) income taxes (2,408) (13,503) 160 (64,422) (201)
---------------- ---------------- ---------------- ---------------- ----------------
Non-GAAP income (loss) from
continuing operations $ (2,677) $ (5,101) $ 4,049 $ (5,897) $ (9,047)
---------------- ---------------- ---------------- ---------------- ----------------
Shares used in computing
income (loss) per share:
Basic - GAAP and Non-GAAP 117,516 116,959 114,678 116,602 113,405
Diluted - GAAP 117,516 137,330 114,678 136,690 113,405
Employee options -- (1,147) 2,991 (864) --
3/4% convertible notes -- (19,224) 19,224 (19,224) --
---------------- ---------------- ---------------- ---------------- ----------------
Diluted - Non-GAAP 117,516 116,959 136,893 116,602 113,405
---------------- ---------------- ---------------- ---------------- ----------------
Summary Balance Sheet and Cash Flow Data
(unaudited)
As of
--------------------------------------------------------------
Balance Sheet Data March 31, 2007 December 31, 2006 March 31, 2006
- -------------------------------------------------------------------------------- ------------------ ------------------ ------------------
(in thousands)
Cash, cash equivalents and marketable securities $ 572,423 $ 572,488 $ 556,552
Accounts receivable, net 34,127 35,318 47,876
Inventories 28,717 30,634 28,259
Other intangible assets 7,011 10,059 32,524
Other assets 73,124 84,871 72,188
------------------ ------------------ ------------------
Total assets $ 715,402 $ 733,370 $ 737,399
================== ================== ==================
Current liabilities $ 65,235 $ 84,699 $ 138,605
Convertible notes and other long-term obligations 228,009 227,990 229,349
Stockholders' equity 422,158 420,681 369,445
------------------ ------------------ ------------------
Total liabilities and stockholders' equity $ 715,402 $ 733,370 $ 737,399
================== ================== ==================
Three-Month Period Ended
--------------------------------------------------------------
Cash Flow Data March 31, 2007 December 31, 2006 March 31, 2006
- -------------------------------------------------------------------------------- ------------------ ------------------ ------------------
(in thousands)
Net income (loss) $ (3,330) $ 6,378 $ (3,392)
Less: Income from discontinued operations 834 1,301 12,420
------------------ ------------------ ------------------
Income (loss) from continuing operations (4,164) 5,077 (15,812)
Adjustments to reconcile income (loss) from continuing operations
to net cash provided by (used for) operations:
Non-cash P&L items:
Non-cash charges associated with other charges 922 -- --
Loss on sale of long-lived assets -- -- 107
Impairment of long-lived assets -- -- 10,024
Non-cash effect of tax settlement (2,111) (12,877) --
Stock-based compensation 1,667 2,240 127
Gain on repurchase of 3% convertibles notes -- -- (22)
Depreciation and amortization 4,070 3,957 5,113
Inventory-related charges 2,378 7,788 1,057
Other items 118 (33) 889
Changes in assets and liabilities 2,479 5,728 (17,675)
------------------ ------------------ ------------------
Net cash provided by (used for) operating activities of continuing operations 5,359 11,880 (16,192)
Net cash provided by operating activities of discontinued operations 2,778 1,897 660
------------------ ------------------ ------------------
Net cash provided by (used for) operating activities $ 8,137 $ 13,777 $ (15,532)
================== ================== ==================
Other significant cash flow activities:
Proceeds from issuance of common stock 1,862 1,304 6,059
Proceeds from sale of business -- -- 35,490
Repurchase of 3% convertible notes (10,637) -- (1,321)
W/.*I_(3[1K]$^0G(=J4^K)&8Q_B!Q>.U#0H'M#+HT2;@PZ6`R
MV^]55IV]S60MTJQ*LV>5L*7(;0GCV35]-<,LV`U'
M<2"81XX2CVS3-6JA$4>4)@X?,(V21L+G:]`(2-%B.`V2Y(IQA)$%?#]
=/H+@_/#Q]-ACAQOSV\?`)(L#.GHXGCZ<=
M$-37M+9IPW.OZ?@UD>]"?C=KT[OUS3#V\=TZ1PG]<0)Y?'FX/)U.OL#5]>VI
M/WF"OP=(Y?J/4Q.3X3W?OWFXNWTXG/]Y"99D:,=0:S[L!H
W#O=@Z.6W=0^M\NNL8JB
MS7J^^:A[0.([]N^Y+4:I+]0%&L>C2[]_SMH?NI^)9!2EKAG)YNS?.H1NVGO2
M0!0"[84\="R03S7O=:!SRMHRVY65`^:"4U*Z+E#8:1>&^MAJ[*&>GP5!^E=X
M6]B)SN%]S.I2VZH`#-F,&W8E8*CEQL?=9#PW-0>+E@Y*R_YMVP>2&>='@?F>
M,;ED2'?)"#@95V(3G2N97%4FCZKQT2DM$N-?V%MM1Z)?L-Q<% O'E>Z=&B6R(L=Z&,X;)$ND&=(W$8C*40"I7N@CKUI3'],K^TE(HBK8KRUXO
MH&910`W\Z9QUB#SJ*,:9T%FS=5)`/<3&="Z@U./F)3G^;FA!F)70=3NVV,DV
MC*7"JTV@D10IZ[(1G494:78!>Y,\X0?SK%C0"9"9JJ[1%,^UI<97;5QA;JYM
M\&72#FJA&D66=8,B-^>ZD&O7MCS:N?I+TY!/ZDO3UHFL99KD)C1-6]S^,_47
MIDD^J?M$XIFZTQ#/C,]526;G<#]3-9%WKM%:Z$)HQ[;9,?+6ZW8A=*YM%UE`
M6Z_;A=`WS7I\<:YAEH1^EIS4.\QU,P&J65HU4\^IK1'-PIXBG)2Q-W:M[*$%
M8:&N<&N[-C.PNW*O,".K-YA1M%O,$.UU9F3=)C-:EC,SFJ8S,]9,%V:T3!=F
M-$P79K1,%V:(>HL9U?@:,ZKE=6;4:*TQHV4V,V/=;F9&RVYFQKI=84;#;&'&
MJMG"C)*<#694LZO,P(BRQ4B1J8$!0X6E.G:GWKQP`RNT66P0U79L4H.W;S,C
M*Z\3H^@V>"&ZJ[3(FBU6M*P**9IFA1-K9C,E6F8S(QIF,R%:9C,?1+E!AVIX
MA0W5ZBH9:GQ6N-`R*518MRE,:-D4(JS;9!XT3&8:K)K,+"AIN$Z":G*=`Y$Z
M[<(!5:?3H@SQO+E2=3S]#6UO2L&/AN=.=.=*63`F=IS!`?^B&,=HE4;,MF=[
MC*TG'ZA3==WO-,.J;O\A0-'1#'&+3?_UUFW)+9,,9H3OWI8R/R;OG'Y7;^?;
MOI^W3)B4E%?I/;U=;/M^WC*9].@]IMIW]':Q[3MZ"QHZ.V(""N_J[7S;/^LM
M3S`_85CZ/(TNKHPN"B/2C[N=[G2WNZ0I5(/0&$/QIH*E*11#FX[LD+Q%2Q>N
MBUL]=KL]QK3_#%J;_AJ3I.I/!YYP=>PO'@:;,-QB;'L:@NWY[\4Y#:/=#R)
M5SWQNF\^>OO^]YVV=V#:JS*(DB\/BQWVMX\+UHZ+W41YR#$Y]F`A66&.A2?]
MX+8?G-&>>'8$?IS#<+B';H_3W"_ONE?;C05K(T,YVQL-AD76*A6GJ7^:-1NB
MC(HD]))B/.(V(1I&FQ5B_FZC\[CQ-0S?WGH$P'\+;&\KWK_^7O]<]9K<)WVO
MNMN]+/8S;R^.XJGAJ0R'I[8\9/U7@`$`LV&J.0T*96YD