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Proc-Type: 2001,MIC-CLEAR
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 8-K
CURRENT REPORT
Date of Report (Date of earliest event reported):
January 28, 2009
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 January 28, 2009, Adaptec, Inc. (the "Company") announced its financial results for the quarter ended December 26, 2008.
A copy of the Company'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 enhance the ability of the investment community to
review the Company's results and projections. 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: 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. The Company excludes stock-based compensation expense
from non-GAAP financial measures because it is a non-cash measurement that does not reflect the Company's
ongoing business; 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 liquidation pool: The management liquidation pool of $5.6 million was included as part of
the total consideration to acquire Aristos Logic Corporation. Under the merger agreement, the Company paid $3.2 million upon closing the merger transaction.
The remaining $2.4 million is payable within twelve months from the acquisition date, to certain employees of the acquired company, contingent upon
their continued employment with the Company. The Company excludes expenses associated with the management liquidation pool 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, customer relationships and backlog 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. 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 intangible assets 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. The amortization of acquisition-related intangible
assets for core and existing technologies and backlog from the Company's acquisition of Aristos Logic Corporation is being reflected as cost of revenues, while the
amortization of acquisition-related intangible assets for customer relationships is being reflected as part of operating expenses. Restructuring charges and other gains:
Restructuring charges primarily relate to activities engaged in
by the Company's management to simplify its infrastructure. Other gains primarily relate to
a gain on sale of long-lived assets. Restructuring charges and other
gains are excluded from non-GAAP financial measures because they are not
considered to be a part of core operating activities. Although the Company has engaged in various restructuring activities over the past several years, each
has been a discrete, individual event based on a unique set of business objectives. The Company does not engage in restructuring activities
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. Other gains are also excluded from non-GAAP financial measures
because the occurrence of such costs is infrequent. Gain on extinguishment of debt: The gain on extinguishment of debt relates to repurchases of the Company's 3/4% convertible notes in the open market.
The gain on extinguishment of debt is excluded from non-GAAP financial measures because the occurrence of such costs is 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: Income taxes relates to incremental income taxes associated with certain non-GAAP items
and tax provisions and refunds from certain discrete tax events that occurred during the first nine months of fiscal 2009.
Discontinued operations: Discontinued operations relates to the sale of the SNAP Server NAS business. Certain items from discontinued operations
are excluded from non-GAAP, which include the gain (loss) on disposal of discontinued operations and certain expenses discussed above related to stock-based compensation,
amortization of acquisition-related intangible assets and income taxes.
The gain (loss) on disposal of discontinued operations is excluded from non-GAAP financial measures because the occurrence of such costs is 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.
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 2.05 Costs Associated with Exit or Disposal Activities
In November 2008, the Company's management was authorized to implement additional restructuring efforts to further minimize expenses as the Company's business began to be impacted by the deterioration of macroeconomic conditions. The Company began to identify personnel that would be impacted by this plan throughout the third quarter of fiscal 2009, and these activities to date have resulted in a charge of $0.9 million related to severance and benefits. On January 28, 2009, the Company announced that management initiated this plan. The Company expects to continue to identify and implement additional cost saving measures pursuant to this plan, and to incur further charges of up to $1.0 million during the fourth quarter of fiscal 2009.
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 January 28, 2009. |
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/ MARY L. DOTZ
Mary L. Dotz Chief Financial Officer |
January 28, 2009
3
EXHIBIT INDEX
|
Description of Exhibit |
|
Press release issued by Adaptec, Inc. on January 28, 2009. 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
R@&F":H5BJL&F"F(/W!-^Q-UU6;.?V5U\K'39N2_P`NANH?
M:&*.DIAS3;ULM;F*01M&H6.L'319P Exhibit 99.1 FOR IMMEDIATE RELEASE Editorial Contact Investor Contact Adaptec Reports Third Quarter Fiscal 2009 Results MILPITAS, Calif. - January 28, 2009 - Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, today reported its
financial results for the third quarter of fiscal 2009, which ended on December 26, 2008.
"While these remain difficult economic times, Adaptec is focused on what will enable us to win in the long-term - innovating for
future growth and carefully managing the business. In the past quarter, we successfully completed the Aristos integration, won two
channel awards for leadership, and brought a new and leading product to market," said S. "Sundi" Sundaresh, President and
CEO of Adaptec. "We have a strong balance sheet that provides us flexibility as we continue to execute on the business
imperatives that will allow us to succeed in the long-term." Financial Overview Net revenues from continuing operations for the Company's third quarter of fiscal 2009 were $28.2 million, compared with $36.1
million for the third quarter of fiscal 2008. Gross margins, computed on a generally accepted accounting principles (GAAP) basis, from
continuing operations were 40% for the third quarter of fiscal 2009, compared with 42% for the third quarter of fiscal 2008. Non-GAAP
gross margins for the third quarter of fiscal 2009 were 44%, compared with 42% for the third quarter of fiscal 2008. The Company's GAAP income from continuing operations, net of taxes, for the third quarter of fiscal 2009 was $0.1 million, or
$0.00 per share, compared with income from continuing operations, net of taxes, of $2.9 million, or $0.02 per share, for the third
quarter of fiscal 2008. GAAP net loss for the third quarter of fiscal 2009 was ($1.3) million, or ($0.01) per share, compared with a net
income of $1.1 million, or $0.01 per share, for the third quarter of fiscal 2008. Non-GAAP income from continuing operations, net of taxes, for the third quarter of fiscal 2009 was $0.1 million, or $0.00 per share,
compared with non-GAAP income from continuing operations, net of taxes, of $6.1 million, or $0.05 per share, for the third quarter of
fiscal 2008. Non-GAAP net loss for the third quarter of fiscal 2009 was ($0.1) million, or
($0.00) per share, compared with non-GAAP net income of $4.6 million, or $0.04 per share, for the
third quarter of fiscal 2008. The non-GAAP results for all periods presented
differ from results measured under
GAAP as they exclude stock-based compensation expense, expense associated with the management liquidation pool established in connection
with the Aristos Logic Corporation transaction, amortization of
acquisition-related intangible assets, restructuring costs, gain on extinguishment of debt, other specified charges or
gains, tax differences due to GAAP versus non-GAAP measurements and certain items related to discontinued operations.
A complete reconciliation between GAAP and non-GAAP
information referred to in this release is provided in the attached tables at the end of this press release
in the section "Use of Non-GAAP Financial Measures." The Company initiated a new restructuring plan to reduce operating expenses during the third quarter of fiscal 2009, incurring a
charge of $0.9 million, related to headcount reductions. The Company expects annual operating expense savings of approximately
$2.9 million from this plan. Conference Call The Adaptec third quarter fiscal 2009 earnings conference call is scheduled for 2:00 p.m. Pacific
Time on January 28, 2009. 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 February 11, 2009 by calling (888) 203-1112 in the U.S. or (719) 457-
0820 internationally and referencing reservation number 4280845. 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 statements regarding the future success of the business
and the expense savings resulting from our restructuring. 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: general
economic conditions; that if we do not meet our restructuring objectives, we may have to continue to implement additional plans in order to
reduce our operating costs; achieving necessary support from the contract manufacturers to which 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 quarter ended September 26, 2008 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.
Use of Non-GAAP Financial Measures 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 enhance the ability of the investment community to
review the Company's results and projections. 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: 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. The Company excludes stock-based compensation expense from non-GAAP financial
measures because it is a non-cash measurement that does not reflect the Company's ongoing business; 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 liquidation pool: The management liquidation pool of $5.6 million was included as part of
the total consideration to acquire Aristos Logic Corporation. Under the merger agreement, the Company paid $3.2 million upon closing the merger transaction.
The remaining $2.4 million is payable within twelve months from the acquisition date, to certain employees of the acquired company, contingent upon
their continued employment with the Company. The Company excludes expenses associated with the management liquidation pool 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, customer relationships and backlog 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. 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 intangible assets 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. The amortization of acquisition-related intangible
assets for core and existing technologies and backlog from the Company's acquisition of Aristos Logic Corporation is being reflected as cost of revenues, while the
amortization of acquisition-related intangible assets for customer relationships is being reflected as part of operating expenses. Restructuring charges and other gains:
Restructuring charges primarily relate to activities engaged in
by the Company's management to simplify its infrastructure. Other gains primarily relate to
a gain on sale of long-lived assets. Restructuring charges and other
gains are excluded from non-GAAP financial measures because they are not
considered to be part of core operating activities. Although the Company has engaged in various restructuring activities over the past several years, each
has been a discrete, individual event based on a unique set of business objectives. The Company does not engage in restructuring activities
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. Other gains are also excluded from non-GAAP financial measures
because the occurrence of such costs is infrequent. Gain on extinguishment of debt: The gain on extinguishment of debt relates to repurchases of the Company's 3/4% convertible notes in the open market.
The gain on extinguishment of debt is excluded from non-GAAP financial measures because the occurrence of such costs is 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: Income taxes relates to incremental income taxes associated with certain non-GAAP items
and tax provisions and refunds from certain discrete tax events that occurred during the first nine months of fiscal 2009. Discontinued operations: Discontinued operations relates to the sale of the SNAP Server NAS business. Certain items from discontinued operations
are excluded from non-GAAP, which include the gain (loss) on disposal of discontinued operations and certain expenses discussed above related to stock-based compensation,
amortization of acquisition-related intangible assets and income taxes.
The gain (loss) on disposal of discontinued operations is excluded from non-GAAP financial measures because the occurrence of such costs is 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.
Adaptec, Inc.
Adaptec, Inc.
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Walt & Company for Adaptec, Inc.
(408) 369-7200 ext. 1062
cbabasa@walt.com
NMN Advisors
(510) 451-2952
GAAP Condensed Consolidated Statements of Operations
(unaudited)
Three-Month Period Ended Nine-Month Period Ended
------------------------------------------- ----------------------------
December 26, September 26, December 28, December 26, December 28,
2008 2008 2007 2008 2007
------------- ------------- ------------- ------------- -------------
(in thousands, except per share amounts)
Net revenues $ 28,205 $ 31,655 $ 36,118 $ 91,363 $ 109,913
Cost of revenues 17,062 18,326 21,058 52,209 69,819
------------- ------------- ------------- ------------- -------------
Gross profit 11,143 13,329 15,060 39,154 40,094
------------- ------------- ------------- ------------- -------------
Operating expenses:
Research and development 7,781 4,863 7,291 18,547 27,142
Selling, marketing
and administrative 9,388 8,753 12,328 27,638 38,750
Amortization of acquisition-
related intangible assets 325 108 631 433 1,904
Restructuring charges 930 1,402 706 4,169 5,660
Other gains -- -- -- -- (5,799)
------------- ------------- ------------- ------------- -------------
Total operating expenses 18,424 15,126 20,956 50,787 67,657
------------- ------------- ------------- ------------- -------------
Loss from continuing operations (7,281) (1,797) (5,896) (11,633) (27,563)
Interest and other income, net 3,574 6,242 8,838 15,078 23,356
Interest expense (142) (476) (805) (1,459) (2,774)
------------- ------------- ------------- ------------- -------------
Income (loss) from continuing
operations before income taxes (3,849) 3,969 2,137 1,986 (6,981)
Provision for (benefit from)
income taxes (3,939) 657 (792) (1,369) (290)
------------- ------------- ------------- ------------- -------------
Income (loss) from continuing
operations, net of taxes 90 3,312 2,929 3,355 (6,691)
------------- ------------- ------------- ------------- -------------
Discontinued operations:
Loss from discontinued
operations, net of taxes (207) -- (1,821) (941) (3,324)
Income (loss) from disposal of
discontinued operations,
net of taxes (1,189) -- -- 4,605 (144)
------------- ------------- ------------- ------------- -------------
Income (loss) from discontinued
operations, net of taxes (1,396) -- (1,821) 3,664 (3,468)
------------- ------------- ------------- ------------- -------------
Net income (loss) $ (1,306) $ 3,312 $ 1,108 $ 7,019 $ (10,159)
============= ============= ============= ============= =============
Income (loss) per common share:
Basic
Continuing operations $ 0.00 $ 0.03 $ 0.02 $ 0.03 $ (0.06)
Discontinued operations $ (0.01) $ -- $ (0.02) $ 0.03 $ (0.03)
Net income (loss) $ (0.01) $ 0.03 $ 0.01 $ 0.06 $ (0.09)
Diluted
Continuing operations $ 0.00 $ 0.02 $ 0.02 $ 0.02 $ (0.06)
Discontinued operations $ (0.01) $ -- $ (0.02) $ 0.03 $ (0.03)
Net income (loss) $ (0.01) $ 0.02 $ 0.01 $ 0.05 $ (0.09)
Shares used in computing
income (loss) per share:
Basic 120,231 119,682 118,987 119,702 118,430
Diluted 120,473 134,594 119,622 132,765 118,430
Reconciliation of GAAP to Non-GAAP Operating Results
(unaudited)
Three-Month Period Ended Nine-Month Period Ended
------------------------------------------- ----------------------------
December 26, September 26, December 28, December 26, December 28,
2008 2008 2007 2008 2007
------------- ------------- ------------- ------------- -------------
(in thousands)
GAAP gross profit $ 11,143 $ 13,329 $ 15,060 $ 39,154 $ 40,094
Stock-based compensation expense 83 118 108 304 280
Amortization of acquisition-
related intangible assets 1,166 427 -- 1,593 --
------------- ------------- ------------- ------------- -------------
Non-GAAP gross profit $ 12,392 $ 13,874 $ 15,168 $ 41,051 $ 40,374
============= ============= ============= ============= =============
GAAP income (loss) from continuing
operations, net of taxes $ 90 $ 3,312 $ 2,929 $ 3,355 $ (6,691)
Stock-based compensation expense 942 (219) 1,770 2,109 4,212
Management liquidation pool 1,002 332 -- 1,334 --
Amortization of acquisition-
related intangible assets 1,491 535 631 2,026 1,904
Restructuring charges 930 1,402 706 4,169 5,660
Other gains -- -- -- -- (5,799)
Gain on extinguishment of debt (360) (1,283) -- (1,643) --
Income taxes (3,985) (31) 55 (2,399) (297)
------------- ------------- ------------- ------------- -------------
Non-GAAP income (loss) from continuing
operations, net of taxes $ 110 $ 4,048 $ 6,091 $ 8,951 $ (1,011)
============= ============= ============= ============= =============
Adjustment for interest expense on
3/4% convertible notes,
net of taxes -- -- 762 -- --
------------- ------------- ------------- ------------- -------------
Adjusted Non-GAAP income (loss) from
continuing operations, net of taxes
-used only to calculate
diluted earnings per share $ 110 $ 4,048 $ 6,853 $ 8,951 $ (1,011)
============= ============= ============= ============= =============
GAAP net income (loss) $ (1,306) $ 3,312 $ 1,108 $ 7,019 $ (10,159)
Stock-based compensation expense 942 (219) 1,770 2,109 4,212
Management liquidation pool 1,002 332 -- 1,334 --
Amortization of acquisition-
related intangible assets 1,491 535 631 2,026 1,904
Restructuring charges 930 1,402 706 4,169 5,660
Other gains -- -- -- -- (5,799)
Gain on extinguishment of debt (360) (1,283) -- (1,643) --
Income taxes (3,985) (31) 55 (2,399) (297)
Loss (income) from discontinued
operations, net of taxes 1,189 -- 298 (4,374) 795
------------- ------------- ------------- ------------- -------------
Non-GAAP net income (loss) $ (97) $ 4,048 $ 4,568 $ 8,241 $ (3,684)
============= ============= ============= ============= =============
Adjustment for interest expense on
3/4% convertible notes, net of tax -- -- 762 -- --
------------- ------------- ------------- ------------- -------------
Adjusted Non-GAAP net income (loss)
-used only to calculate
diluted earnings per share $ (97) $ 4,048 $ 5,330 $ 8,241 $ (3,684)
============= ============= ============= ============= =============
Shares used in computing
income (loss) per share:
Basic - GAAP and Non-GAAP 120,231 119,682 118,987 119,702 118,430
Diluted - GAAP 120,473 134,594 119,622 132,765 118,430
Employee options and awards -- -- -- -- --
3/4% convertible notes -- (14,152) 19,224 (12,374) --
------------- ------------- ------------- ------------- -------------
Diluted - Non-GAAP 120,473 120,442 138,846 120,391 118,430
============= ============= ============= ============= =============
Summary Balance Sheet and Cash Flow Data
(unaudited)
As of
----------------------------------------------------------
Balance Sheet Data December 26, 2008 March 31, 2008 December 28, 2007
- ------------------------------------------------------------ ------------------ ------------------ ------------------
(in thousands)
Cash, cash equivalents and marketable securities $ 371,213 $ 626,216 $ 597,756
Accounts receivable, net 16,613 23,204 29,250
Inventories 7,007 9,926 14,363
Goodwill and other intangible assets, net 37,960 -- 3,148
Other assets 43,593 40,741 51,024
------------------ ------------------ ------------------
Total assets $ 476,386 $ 700,087 $ 695,541
================== ================== ==================
Current liabilites $ 30,424 $ 31,439 $ 44,259
Current portion of convertible notes 2,005 225,321 225,241
Other long-term obligations 15,101 19,231 5,894
Stockholders' equity 428,856 424,096 420,147
------------------ ------------------ ------------------
Total liabilities and stockholders' equity $ 476,386 $ 700,087 $ 695,541
================== ================== ==================
Three-Month Period Ended
----------------------------------------------------------
Cash Flow Data December 26, 2008 September 26, 2008 December 28, 2007
- ------------------------------------------------------------ ------------------ ------------------ ------------------
(in thousands)
Net income (loss) $ (1,306) $ 3,312 $ 1,108
Less: loss from discontinued operations, net of taxes (1,396) -- (1,821)
------------------ ------------------ ------------------
Income from continuing operations, net of taxes 90 3,312 2,929
Adjustments to reconcile income from continuing
operations, net of taxes, to net cash provided by
(used in) operating activities:
Non-cash P&L items:
Stock-based compensation expense 942 (219) 1,770
Inventory-related charges 1,276 271 349
Depreciation and amortization 2,488 1,673 1,440
Gain on extinguishment of debt (360) (1,283) --
Changes in assets and liabilities (8,379) 2,002 (7,043)
------------------ ------------------ ------------------
Net cash provided by (used in) operating activities
of continuing operations (3,943) 5,756 (555)
Net cash used in operating activities
of discontinued operations (207) -- (1,017)
------------------ ------------------ ------------------
Net cash provided by (used in) operating activities $ (4,150) $ 5,756 $ (1,572)
================== ================== ==================
Other significant cash flow activities:
Proceeds from issuance of common stock 10 1,589 572
Payments for business acquisitions, net of cash acquired -- (38,005) --
Repurchase of 3/4% Notes (84,522) (136,858) --
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