EX-99.1 2 a06-3912_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

Editorial Contact:

 

Investor Contact:

Mary Camarata

 

Marshall Mohr

Adaptec, Inc.

 

Adaptec, Inc.

408-957-1630

 

408-957-6773

mary_camarata@adaptec.com

 

marshall_mohr@adaptec.com

 

ADAPTEC REPORTS THIRD QUARTER FY 2006 RESULTS

 

•                  Q3 Net Revenue from continuing operations: $77.8 million

 

•                  Q3 Income(loss) from continuing operations: ($2.6) million GAAP; $3.3 million Non-GAAP

 

MILPITAS, Calif. – January 31, 2006 - Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, today reported financial results for the third quarter of its fiscal year of 2006, which ended on December 31, 2005.

 

Net revenue for the Company’s continuing operations for the third quarter of fiscal 2006 was $77.8 million, compared with $84.9 million for the second quarter of fiscal 2006 and $93.5 million for the third quarter of 2005.

 

The loss from continuing operations, computed on a generally accepted accounting principles (GAAP) basis, for the third quarter of fiscal 2006 was ($2.6) million or ($0.02) per share compared with ($96.0) million or ($0.85) per share for the second quarter of fiscal 2006 and GAAP net income from continuing operations of $17.0 million or $0.13 per share for the third quarter of fiscal 2005.  Included in the fiscal second quarter of 2006 net loss was the total impairment of goodwill of $90.6 million and a loss on the sale of the IBM I&P Series business of $7.0 million. The non-GAAP net income for continuing operations for the third quarter of fiscal 2006 was $3.3 million or $0.03 per share compared with a non-GAAP net loss of ($3.1) million or ($0.03) per share for the second quarter of fiscal 2006 and non-GAAP net loss of ($0.9) million or ($0.01) per share for the third quarter of fiscal 2005.

 

The GAAP net loss for the third quarter of fiscal 2006 was ($3.3) million or ($0.03) per share compared with a net loss of ($105.8) million or ($0.94) per share for the second quarter of fiscal 2006 and a net income of $22.5 million or $0.17 per share for the third quarter of fiscal 2005.  The non-GAAP net income for the third quarter of fiscal 2006 was $1.3 million or $0.01 per share compared with a non-GAAP net loss of ($1.5) million or ($0.01) per share for the second quarter of fiscal 2006 and a non-GAAP net loss of ($3.5) million or ($0.03) per share for the third quarter of fiscal 2005. A complete

 


reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables.

 

The Company indicated that its improved performance during the third fiscal quarter is primarily attributed to favorable component costs, reduced operating costs and one-time benefits associated with the renegotiation of an OEM supply agreement.

 

“The actions taken over the past six months have created a better long-term operating business model for Adaptec,” said S. “Sundi” Sundaresh, president and CEO of Adaptec.  “We are continuing to make strides in bringing the company back to profitability, including the modification of an OEM system supply contract, outsourcing our manufacturing operations to Sanmina-SCI and reducing our operating expenses which resulted in a strengthened cash position. We feel confident that the actions we are taking now and in our fourth quarter will position Adaptec for an improved fiscal 2007.”

 

Conference Call

 

The Adaptec third quarter 2006 earnings conference call is scheduled for 1:45 p.m. Pacific Time on January 31, 2006. Individuals may participate via webcast by visiting www.adaptec.com/investor 15 minutes prior to the call. A telephone replay will be made accessible for one week, at (800) 642-1687 (domestic) or (706) 645-9291 (international) with ID#3821188. A webcast replay will also be available via the Adaptec Web site at www.adaptec.com/investor.

 

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 include statements regarding future events or the future performance of Adaptec. 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 potential buyers for the Systems business; market demand for RAID 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 30, 2005, on file with the Securities and Exchange Commission. Adaptec assumes no obligation to update any forward looking information that is included in this release.

 


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, and consumers worldwide. Adaptec is an S&P Small Cap 600 Index member. More information is available at www.adaptec.com.

 

###

 


Adaptec, Inc.

GAAP Condensed Consolidated Statements of Operations and

Reconciliation of GAAP to Non-GAAP Operating Results (*)

(unaudited)

 

 

 

Three-Month Period Ended

 

 

 

December 31, 2005

 

December 31, 2004

 

 

 

GAAP

 

Adjustments

 

Non-GAAP

 

GAAP

 

Adjustments

 

Non-GAAP

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

77,831

 

$

—

 

$

77,831

 

$

93,473

 

$

—

 

$

93,473

 

Cost of revenues

 

48,857

 

—

 

48,857

 

59,577

 

—

 

59,577

 

Gross profit

 

28,974

 

—

 

28,974

 

33,896

 

—

 

33,896

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

14,404

 

(52

)(a)

14,352

 

21,293

 

(339

)(b)

20,954

 

Selling, marketing and administrative

 

15,739

 

(73

)(a)

15,666

 

17,785

 

(372

)(b)

17,413

 

Amortization of acquisition-related intangible assets

 

1,689

 

(1,689

)(c)

—

 

2,182

 

(2,182

)(d)

—

 

Restructuring charges

 

2,587

 

(2,587

)(e)

—

 

2,228

 

(2,228

)(e)

—

 

Other charges

 

1,472

 

(1,472

)(f)

—

 

(2,755

)

2,755

 (g)

—

 

Total operating expenses

 

35,891

 

(5,873

)

30,018

 

40,733

 

(2,366

)

38,367

 

Loss from continuing operations

 

(6,917

)

5,873

 

(1,044

)

(6,837

)

2,366

 

(4,471

)

Interest and other income

 

4,479

 

—

 

4,479

 

3,097

 

442

(h) 

3,539

 

Interest expense

 

(758

)

—

 

(758

)

(1,083

)

—

 

(1,083

)

Income (loss) from continuing operations before income taxes

 

(3,196

)

5,873

 

2,677

 

(4,823

)

2,808

 

(2,015

)

Benefit from income taxes

 

(582

)

(52

)(i)

(634

)

(21,788

)

20,710

 (j)

(1,078

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(2,614

)

5,925

 

3,311

 

16,965

 

(17,902

)

(937

)

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of taxes

 

(4,149

)

2,102

 (k)

(2,047

)

5,524

 

(8,121

)(k)

(2,597

)

Income from disposal of discontinued operations, net of taxes

 

3,502

 

(3,502

)(k)

—

 

—

 

—

 

—

 

Income (loss) from discontinued operations, net of taxes

 

(647

)

(1,400

)

(2,047

)

5,524

 

(8,121

)

(2,597

)

Net income (loss)

 

$

(3,261

)

$

4,525

 

$

1,264

 

$

22,489

 

$

(26,023

)

$

(3,534

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.02

)

 

 

$

0.03

 

$

0.15

 

 

 

$

(0.01

)

Discontinued operations

 

$

(0.01

)

 

 

$

(0.02

)

$

0.05

 

 

 

$

(0.02

)

Net income (loss)

 

$

(0.03

)

 

 

$

0.01

 

$

0.20

 

 

 

$

(0.03

)

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.02

)

 

 

$

0.03

 

$

0.13

 

 

 

$

(0.01

)

Discontinued operations

 

$

(0.01

)

 

 

$

(0.02

)

$

0.04

 

 

 

$

(0.02

)

Net income (loss)

 

$

(0.03

)

 

 

$

0.01

 

$

0.17

 

 

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

113,531

 

—

 

113,531

 

111,136

 

—

 

111,136

 

Diluted

 

113,531

 

21,130

(l) 

134,661

 

134,517

 

(23,381

)(m)

111,136

 

 


Adaptec, Inc.

GAAP Condensed Consolidated Statements of Operations and

Reconciliation of GAAP to Non-GAAP Operating Results (*)

(unaudited)

 

 

 

Nine-Month Period Ended

 

 

 

December 31, 2005

 

December 31, 2004

 

 

 

GAAP

 

Adjustments

 

Non-GAAP

 

GAAP

 

Adjustments

 

Non-GAAP

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

$

236,731

 

$

—

 

$

236,731

 

$

292,299

 

$

—

 

$

292,299

 

Cost of revenues

 

156,442

 

(15

)(n)

156,427

 

164,912

 

—

 

164,912

 

Gross profit

 

80,289

 

15

 

80,304

 

127,387

 

—

 

127,387

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

47,254

 

(89

)(n)

47,165

 

68,237

 

(1,677

)(o)

66,560

 

Selling, marketing and administrative

 

49,717

 

(1,049

)(n)

48,668

 

55,044

 

(2,499

)(o)

52,545

 

Amortization of acquisition-related intangible assets

 

5,466

 

(5,466

)(c)

—

 

7,070

 

(7,070

)(d)

—

 

Restructuring charges

 

3,105

 

(3,105

)(e)

—

 

4,975

 

(4,975

)(e)

—

 

Goodwill impairment

 

90,602

 

(90,602

)(p)

—

 

—

 

—

 

—

 

Other charges

 

1,472

 

(1,472

)(f)

—

 

(2,755

)

2,755

 (g)

—

 

Total operating expenses

 

197,616

 

(101,783

)

95,833

 

132,571

 

(13,466

)

119,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(117,327

)

101,798

 

(15,529

)

(5,184

)

13,466

 

8,282

 

Interest and other income

 

12,610

 

101

 (q)

12,711

 

8,599

 

1,692

 (h)

10,291

 

Interest expense

 

(2,598

)

—

 

(2,598

)

(3,350

)

—

 

(3,350

)

Income (loss) from continuing operations before income taxes

 

(107,315

)

101,899

 

(5,416

)

65

 

15,158

 

15,223

 

Provision for (benefit from) income taxes

 

3,206

 

867

 (i)

4,073

 

(31,463

)

35,209

 (j)

3,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(110,521

)

101,032

 

(9,489

)

31,528

 

(20,051

)

11,477

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of taxes

 

(31,045

)

25,975

 (k)

(5,070

)

(17,092

)

12,195

 (k)

(4,897

)

Loss from disposal of discontinued operations, net of taxes

 

(3,474

)

3,474

 (k)

—

 

—

 

—

 

—

 

Loss from discontinued operations, net of taxes

 

(34,519

)

29,449

 

(5,070

)

(17,092

)

12,195

 

(4,897

)

Net income (loss)

 

$

(145,040

)

$

130,481

 

$

(14,559

)

$

14,436

 

$

(7,856

)

$

6,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.98

)

 

 

$

(0.08

)

$

0.29

 

 

 

$

0.10

 

Discontinued operations

 

$

(0.31

)

 

 

$

(0.04

)

$

(0.15

)

 

 

$

(0.04

)

Net income (loss)

 

$

(1.28

)

 

 

$

(0.13

)

$

0.13

 

 

 

$

0.06

 

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.98

)

 

 

$

(0.08

)

$

0.25

 

 

 

$

0.10

 

Discontinued operations

 

$

(0.31

)

 

 

$

(0.04

)

$

(0.13

)

 

 

$

(0.04

)

Net income (loss)

 

$

(1.28

)

 

 

$

(0.13

)

$

0.12

 

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

112,980

 

—

 

112,980

 

110,429

 

—

 

110,429

 

Diluted

 

112,980

 

—

 

112,980

 

131,607

 

—

 

131,607

 

 


(*) To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), we use non-GAAP measures of operating results, net income/(loss) and earnings per share, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses.  These non-GAAP measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future.  Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that we believe are not indicative of our core operating results.  In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting. Further, these non-GAAP results are one of the primary indicators management uses for assessing our performance, allocating resources and planning and forecasting future periods. The non-GAAP 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.

 

(a) Management incentive program of $0.1 million associated with the Snap Appliance acquisition (acquired in July 2004) and deferred compensation expense related to assumed stock options associated with the Snap Appliance acquisition. These assumed options were negotiated as part of the acquisition and represent compensation over and above the amounts that we provide to these acquired employees.

 

(b) Management incentive program of $0.3 million associated with the Snap Appliance acquisition and deferred compensation expense related to assumed stock options of $0.4 million associated with the Platys (acquired in August 2001) and Snap Appliance acquisitions.

 

(c) Amortization of acquisition-related intangible assets, primarily core and existing technologies, patents and customer relationships intangible assets, related to the acquisitions of Platys, Eurologic (acquired in April 2003), ICP vortex (acquired in June 2003), Elipsan (acquired in February 2004), and the IBM i/p Series RAID business (acquired in June 2004).

 

(d) Amortization of acquisition-related intangible assets, primarily core and existing technologies, patents and customer relationships intangible assets, related to the acquisitions of Platys, Eurologic, ICP vortex and Elipsan.

 

(e) Restructuring expense primarily related to (i) activities under the third quarter of fiscal 2006 restructuring plan to simplify our infrastructure by reducing headcount and consolidating facilities as well as adjustments made to previous restructuring plans in the first, second and third quarters of fiscal 2006 and (ii) to activities under the first, second and third quarter of fiscal 2005 restructuring plans to reduce headcount, consolidate facilities and other actions related to the Snap Appliance acquisition as well as adjustments made to previous restructuring plans in the second and third quarters of fiscal 2005.

 

(f) Loss on the sale of our Singapore manufacturing assets, buildings and improvements and inventory.

 

(g) Gain on sale of long-lived assets.

 

(h) Expense related to a license and release agreement to settle claims that some of our products infringed certain patents.

 

(i) Incremental income taxes associated with certain non-GAAP adjustments.

 

(j) Incremental income taxes associated with certain non-GAAP adjustments and a tax benefit from certain discrete tax events during the second and third quarter of fiscal 2005 related to the method and amount of settled tax controversies.

 

(k) Loss (income) from disposal of the IBM i/p Series RAID business, impairment of the IBM i/p Series RAID long-lived assets,  write-off of in-process research and development costs associated with the acquisitions of Snap Appliance and the IBM i/p Series RAID business, amortization of acquisition-related intangible assets related to the acquisitions of Platys, Eurologic, ICP vortex, Snap Appliance and the IBM i/p Series RAID business, management incentive program associated with the

 


Snap Appliance acquisition, deferred compensation expense related to assumed stock options associated with the Snap Appliance acquisition, cash hire-on payments associated with the IBM i/p Series RAID business acquisition, and incremental income taxes associated with certain GAAP and non-GAAP adjustments. Amounts are summarized below:

 

(in millions)

 

Three-month ended
December 31, 2005

 

Three-month ended
December 31, 2004

 

Nine-month ended
December 31, 2005

 

Nine-month ended
December 31, 2004

 

Three-month ended
September 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of the IBM i/p Series RAID Business

 

$

—

 

$

—

 

$

15.5

 

$

—

 

$

—

 

Write-off of in-process research and development

 

—

 

—

 

—

 

5.2

 

—

 

Acquisition-related intangible assets

 

—

 

2.9

 

5.2

 

6.1

 

2.3

 

Management incentive program

 

0.8

 

1.1

 

3.5

 

2.1

 

2.0

 

Deferred compensation expense

 

0.2

 

0.3

 

1.3

 

0.5

 

1.0

 

Cash hire-on payments

 

—

 

—

 

—

 

0.6

 

—

 

Loss (gain) from disposal of IBM i/p Series RAID

 

(3.5

)

—

 

3.5

 

—

 

7.0

 

Income taxes

 

1.1

 

(12.4

)

0.5

 

(2.3

)

(0.9

)

Total

 

$

(1.4

)

$

(8.1

)

$

29.5

 

$

12.2

 

$

11.4

 

 

(l) Anti-dilutive effect of employee options and 3/4% convertible notes.

 

(m) Dilutive effect of employee options, 3/4% convertible notes and 3% convertible notes.

 

(n) Management incentive program of $0.9 million associated with the Snap Appliance acquisition and deferred compensation expense related to assumed stock options of $0.2 million associated with the Platys and Snap Appliance acquisitions.

 

(o) Management incentive program of $2.2 million associated with the Snap Appliance acquisition, deferred compensation expense related to assumed stock options of $2.0 million associated with the Platys and Snap Appliance acquisitions.

 

(p) Impairment of goodwill.

 

(q) Loss on repurchase of 3% convertible notes.

 

(r) Management incentive program of $0.2 million associated with the Snap Appliance acquisition and deferred compensation expense related to assumed stock options of $0.1 million associated with the Platys and Snap Appliance acquisitions.

 


Adaptec, Inc.

Summary Balance Sheet and Cash Flow Data

(unaudited)

 

Balance Sheet Data

 

 

 

 

 

As of

 

 

 

December 31, 2005

 

March 31, 2005

 

December 31, 2004

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

532,306

 

$

526,556

 

$

517,176

 

Accounts receivable, net

 

57,086

 

70,159

 

87,488

 

Inventories

 

22,441

 

60,204

 

56,650

 

Goodwill and other intangible assets

 

21,739

 

170,943

 

246,718

 

Other assets

 

61,732

 

135,644

 

208,452

 

Assets held for sale

 

22,583

 

—

 

—

 

Assets from discontinued operations

 

30,481

 

—

 

—

 

Total assets

 

$

748,368

 

$

963,506

 

$

1,116,484

 

 

 

 

 

 

 

 

 

Current liabilities

 

135,043

 

177,644

 

164,952

 

Liabilities from discontinued operations

 

5,336

 

—

 

—

 

Convertible notes and other long-term obligations

 

240,648

 

275,539

 

285,464

 

Stockholders’ equity

 

367,341

 

510,323

 

666,068

 

Total liabilities and stockholders’ equity

 

$

748,368

 

$

963,506

 

$

1,116,484

 

 

 

 

 

 

 

 

 

Cash Flow Data

 

 

 

 

 

Three-Month Period Ended

 

 

 

December 31, 2005

 

September 30, 2005

 

December 31, 2004

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(2,614

)

$

(95,993

)

$

16,965

 

Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used for) operations:

 

 

 

 

 

 

 

Non-cash P&L items:

 

 

 

 

 

 

 

Goodwill impairment

 

—

 

90,602

 

—

 

Loss (gain) on sale of long-lived assets

 

1,472

 

—

 

(2,755

)

Stock-based compensation

 

20

 

77

 

829

 

Non-cash effect of tax settlement

 

—

 

—

 

(21,941

)

Loss on repurchase of 3% convertible notes

 

—

 

16

 

—

 

Depreciation and amortization

 

6,340

 

6,576

 

9,257

 

Other items

 

507

 

(262

)

(187

)

Changes in assets and liabilities

 

11,913

 

4,679

 

(2,040

)

Net cash provided by operating activities of continuing operations

 

17,638

 

5,695

 

128

 

Net cash provided by (used for) operating activities of discontinued operations

 

2,109

 

5,995

 

(16,089

)

Net cash provided by (used for) operating activities

 

$

19,747

 

$

11,690

 

$

(15,961

)

 

 

 

 

 

 

 

 

Other significant cash flow activities:

 

 

 

 

 

 

 

Proceeds from the sale of business

 

24,126

 

—

 

—

 

Repurchase of 3% convertible notes

 

—

 

(4,343

)

—

 

 


 

Adaptec, Inc.

GAAP Condensed Consolidated Statements of Operations and

Reconciliation of GAAP to Non-GAAP Operating Results (*)

(unaudited)

 

 

 

Three-Month Period Ended
September 30, 2005

 

 

 

GAAP

 

Adjustments

 

Non-GAAP

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Net revenues

 

$

84,937

 

$

—

 

$

84,937

 

Cost of revenues

 

56,171

 

(15

)(r)

56,156

 

Gross profit

 

28,766

 

15

 

28,781

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

16,197

 

(54

)(r)

16,143

 

Selling, marketing and administrative

 

16,612

 

(208

)(r)

16,404

 

Amortization of acquisition-related intangible assets

 

1,761

 

(1,761

)(d)

—

 

Restructuring charges

 

478

 

(478

)(e)

—

 

Goodwill impairment

 

90,602

 

(90,602

)(p)

—

 

Total operating expenses

 

125,650

 

(93,103

)

32,547

 

Loss from continuing operations

 

(96,884

)

93,118

 

(3,766

)

Interest and other income

 

4,523

 

15

 (q)

4,538

 

Interest expense

 

(868

)

—

 

(868

)

Loss from continuing operations before income taxes

 

(93,229

)

93,133

 

(96

)

Provision for income taxes

 

2,764

 

275

 (i)

3,039

 

Loss from continuing operations

 

(95,993

)

92,858

 

(3,135

)

Discontinued operations:

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of taxes

 

(2,837

)

4,434

 (k)

1,597

 

Loss from disposal of discontinued operations, net of taxes

 

(6,976

)

6,976

 (k)

—

 

Income (loss) from discontinued operations, net of taxes

 

(9,813

)

11,410

 

1,597

 

Net loss

 

$

(105,806

)

$

104,268

 

$

(1,538

)

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

Continuing operations

 

$

(0.85

)

 

 

$

(0.03

)

Discontinued operations

 

$

(0.09

)

 

 

$

0.01

 

Net loss

 

$

(0.94

)

 

 

$

(0.01

)

Diluted

 

 

 

 

 

 

 

Continuing operations

 

$

(0.85

)

 

 

$

(0.03

)

Discontinued operations

 

$

(0.09

)

 

 

$

0.01

 

Net loss

 

$

(0.94

)

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

Shares used in computing net loss per share:

 

 

 

 

 

 

 

Basic

 

112,965

 

—

 

112,965

 

Diluted

 

112,965

 

—

 

112,965

 

 

Please see the footnotes accompanying the Condensed Consolidated Statement of Operations for the three- and nine-month period ended December 31, 2005 and 2004 for an explanation of the footnotes referred to in the table above.