-----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, OB6swFSIAhFBShS7ByBJ4iVADYO0GOmRlrYPn0lTwqeIcb0Rlu22Yk1u6bN5BcBA nVgl01F0EAQsELFddS6YGA== 0000891618-96-000360.txt : 19960513 0000891618-96-000360.hdr.sgml : 19960513 ACCESSION NUMBER: 0000891618-96-000360 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960510 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALTERA CORP CENTRAL INDEX KEY: 0000768251 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 770016691 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16617 FILM NUMBER: 96559470 BUSINESS ADDRESS: STREET 1: 2610 ORCHARD PARKWAY CITY: SAN JOSE STATE: CA ZIP: 95134-2020 BUSINESS PHONE: 4088947000 MAIL ADDRESS: STREET 1: 2610 ORCHARD PARKWAY CITY: SAN JOSE STATE: CA ZIP: 95134-2020 10-Q 1 ALTERA CORPORATION FROM 10-Q PERIOD ENDING 3/31/96 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 1996 or / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to ---------- ---------- Commission file number 0-16617 ALTERA CORPORATION (Exact name of registrant as specified in its charter) California 77-0016691 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2610 Orchard Parkway, San Jose, California 95134 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (408) 894-7000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes X No ------ ----- Number of shares of common stock outstanding at March 31, 1996: 43,688,474 2 ALTERA CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996 PART I FINANCIAL INFORMATION AND MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2 3 ALTERA CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts)
March 31, Dec.31, 1996 1995 ----------- -------- ASSETS (Unaudited) Current assets: Cash, cash equivalents $102,479 $ 79,409 Short-term investments 247,187 285,810 -------- -------- Total cash, cash equivalents, and short-term investments 349,666 365,219 Accounts receivable, less allowance for doubtful accounts of $1,460 and $1,005 60,362 54,518 Inventories 75,146 55,421 Deferred income taxes 43,339 37,339 Other current assets 5,621 5,510 -------- -------- Total current assets 534,134 518,007 Property and equipment, net 57,935 54,846 Investments and other assets 143,237 142,701 -------- -------- $735,306 $715,554 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 24,039 $ 17,049 Accrued liabilities 92,932 72,209 Notes payable 53,800 61,920 Accrued compensation 8,444 16,347 Income taxes payable 26,490 4,240 -------- -------- Total current liabilities 205,705 171,765 Notes payable 9,600 58,600 Convertible notes 230,000 230,000 -------- -------- Total liabilities 445,305 460,365 -------- -------- Shareholders' equity: Common stock; no par value: 80,000,000 shares authorized, 43,688,474 and 43,558,321 shares issued and outstanding 86,817 83,445 Retained earnings 203,184 171,744 -------- -------- 290,001 255,189 -------- -------- $735,306 $715,554 ======== ========
3 4 ALTERA CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
THREE MONTHS ENDED March 31, March 31, 1996 1995 -------- ------- Sales $137,098 $75,038 -------- ------- Costs and expenses: Cost of sales 53,054 30,051 Research and development 12,523 6,586 Selling, general, and administrative 23,320 15,382 -------- ------- Total costs and expenses 88,897 52,019 -------- ------- Operating income 48,201 23,019 Interest and other income 923 945 -------- ------- Income before taxes 49,124 23,964 Provision for income taxes 17,684 8,867 -------- ------- Net income $ 31,440 $15,097 ======== ======= Income per share: Primary $ 0.68 $ 0.34 ======== ======= Fully diluted $ 0.66 $ 0.34 ======== ======= Shares and equivalents used in calculation of income per share: Primary 45,968 45,062 ======== ======= Fully diluted 50,463 45,062 ======== =======
4 5 ALTERA CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (In thousands) (Unaudited)
THREE MONTHS ENDED March 31, March 31, 1996 1995 --------- -------- Cash flows from operating activities: Net income $ 31,440 $ 15,097 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,603 2,666 Changes in assets and liabilities: Accounts receivable, net (5,844) (12,242) Inventories (19,725) 1,074 Deferred income taxes (6,000) -- Other current and non-current assets (111) (1,139) Accounts payable 6,990 2,802 Accrued liabilities 20,723 6,011 Accrued compensation (7,903) (3,187) Income taxes payable 22,250 7,948 --------- -------- Cash provided by operating activities 46,423 19,030 --------- -------- Cash flows from investing activities: Purchases of property and equipment (6,228) (5,280) Net change in short-term investments 38,623 245 Long-term investments (2,000) -- --------- -------- Cash provided by (used for) investing activities 30,395 (5,035) --------- -------- Cash flows from financing activities: Net proceeds from issuance of common stock 3,372 1,811 Payment on notes payable (57,120) -- --------- -------- Cash provided by (used for) financing activities (53,748) 1,811 --------- -------- Net increase in cash and cash equivalents 23,070 15,806 Cash and cash equivalents at beginning of period 79,409 41,639 --------- -------- Cash and cash equivalents at end of period $ 102,479 $ 57,445 ========= ======== Supplemental disclosure of cash flow information: Cash paid during the period for income taxes $ 1,320 $ 910
5 6 ALTERA CORPORATION NOTES TO FINANCIAL INFORMATION (Unaudited) Note 1 - Interim Statements: In the opinion of the Company, the accompanying unaudited financial data contain all adjustments, consisting only of normal, recurring adjustments, necessary to present fairly the financial information included therein. This financial data should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report to Shareholders for the year ended December 31, 1995. Results for the interim period presented are not necessarily indicative of results for the entire year. Note 2 - Balance Sheet Detail:
(In Thousands) March 31, Dec. 31, 1996 1995 --------- -------- (Unaudited) Inventories: Purchased parts and raw materials $ 1,715 $ 2,067 Work-in-process 50,112 38,617 Finished goods 23,319 14,737 --------- -------- $ 75,146 $ 55,421 ========= ======== Property and equipment: Land $ 19,925 $ 19,925 Building 2,028 1,605 Equipment 67,939 64,703 Office furniture and equipment 7,704 4,908 Leasehold improvements 3,261 3,512 --------- -------- 100,857 94,653 Less accumulated depreciation and amortization (42,922) (39,807) --------- -------- $ 57,935 $ 54,846 ========= ========
Note 3 - Earnings per Share: Primary income per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares consist of the assumed net shares issuable upon the exercise of dilutive stock options using the treasury stock method. The Convertible Subordinated Notes issued in June 1995 are not common stock equivalents and, therefore, have been excluded from the computation of primary earnings per share. Fully diluted net income per share is computed by adjusting the primary shares outstanding and net income for the potential effect of the conversion of the weighted convertible subordinated notes into shares of common stock outstanding during the respective periods and the elimination of the related interest requirements (net of income taxes). 6 7 ALTERA CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Sales. First quarter 1996 sales of $137.1 million were 83% higher than the $75.0 million reported for the same period last year, and were up 9% from fourth quarter 1995 sales of $125.3 million. Sales were higher than the first quarter of 1995 primarily as a result of higher sales of the Company's MAX 7000 and FLEX 8000 product lines. As compared to the same period last year, sales in North America increased 101% and international sales increased 64%. As compared to the prior quarter, sales growth was primarily driven by the MAX 7000 family. Although sales growth was strongest in the Asia Pacific, all sales channels reported growth compared to the fourth quarter of 1995, except for Japan where sales declined approximately 10%. While overall orders exceeded shipments in the first quarter, order rates declined significantly in the last several weeks of the quarter and in the beginning weeks of the second quarter. Two factors, improved availability of the Company's products and slowing growth rates in end-markets, have resulted in a rapidly changing business climate for the Company. First, as a result of increased wafer supply from the Company's vendors, the delivery lead times for many of the Company's products were reduced significantly over the course of the first quarter of 1996. This resulted in a change from 1995 when supplies were constrained and the Company's customers held greater inventories and placed orders prior to requested delivery dates by as much as six months in order to secure a supply of the Company's products. Now that most of the Company's products have significantly increased availability, end-customers are likely to reduce their inventories by purchasing less product in the near term. Second, while end-customer demand for the Company's products increased in the first quarter, the growth rate of such demand declined as compared to recent quarters. Management believes that this decline is being driven by slower growth rates in the markets of the Company's end-customers as well as reductions in end-customer inventories. Thus, management believes that the growth rate for sales of the Company's products in the near term will be substantially lower than has been experienced in the past twelve months. 7 8 The Company expects to increase its supply of inventories on hand during 1996 to support customers' desire to order on a shorter lead time basis. During 1995, the Company entered into several agreements with Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), whereby it agreed to make deposits to TSMC for future wafer capacity allocations extending into 2001. The prepayments under these agreements are generally nonrefundable if the Company does not purchase the prepaid capacity or identifies an acceptable third-party purchaser. These agreements may impair the Company's flexibility to reduce its wafer supply should demand decrease below levels presently anticipated. Historically, semiconductor prices decline as products mature. New product introductions from competitors may also increase pricing pressure and compete for overall unit sales. The Company has responded to these pricing pressures with the introduction of new, higher margin products. In 1995 the Company began shipping two new product families, the MAX 9000 and FLEX 10K families. Future growth rates will be highly dependent on, among other things, market acceptance of these new product lines. There can be no assurance that these or other new products will be successful in securing broad market acceptance or achieving higher margins, or that the average selling price decline on existing products will not accelerate. Gross Margin. Gross margin percentage in the first quarter of 61.3% was essentially equal to the prior quarter, but up from 59.9% in the same period a year ago. The gross margin improvement over the prior year was attributed to a greater proportion of proprietary product shipments at higher margins and improved manufacturing yields. Despite a reduction in book prices on the MAX 7000 and FLEX 8000 product lines in the first quarter of 1996, the gross margin was maintained from the prior quarter as a result of lower manufacturing costs resulting from improved yields and scale economies on higher manufacturing volumes. Although yields improved in the first quarter of 1996 as compared to the prior quarter, there can be no assurances that recently achieved yield improvements will continue or that yields will not deteriorate. The Company continues to spend significant research and development resources to improve production yields on its products. The need to improve production yields also exists with the new products and fabrication processes used by the Company. However, there can be no assurances that these cost reductions will be achieved. Start-up difficulties often occur when beginning production of products on new processes, and these difficulties could potentially result in higher costs and reduced product availability. Management also expects to introduce products in the future using other process technologies new to the Company and expects that it may encounter similar difficulties at such times. Production throughput times also vary considerably among the Company's wafer suppliers and the Company has experienced delays from time to time in processing some of its products. In addition, the slowed growth in demand during the first quarter of 1996 and high inventory levels at distributors and end-customers is causing pricing pressures on 8 9 the Company's products. The Company has announced a price reduction on the FLEX 8000 product line effective in the second quarter. Management believes that cost reductions stemming from recently improved manufacturing yields will offset the effect of this price reduction on the margins, however, there can be no assurance that such cost reductions will be achieved or maintained. Additional price reductions may be implemented during 1996 for competitive reasons. Such price reductions may result in the deterioration of gross margins. Research and Development. Research and development expenditures were $12.5 million for the quarter ended March 31, 1996, or $5.9 million higher than the quarter ended a year ago, and up $2.0 million from the prior quarter. The increase as compared to the previous year is the result of higher expenditures related to prototype and development wafers, and pre-production processes for the recently introduced MAX 9000 and FLEX 10K product families, as well as general spending on development of process technology, development of software to support new products and design environments, and development of new packages. Management of the Company expects to continue to make significant investments in research and development. The Company is focusing its research and development efforts on the development of programmable logic chips, related development software and hardware, and advanced semiconductor wafer fabrication processes. However, even if the Company accomplishes its goals for the development of new products and manufacturing processes, there is no assurance that these products will achieve market acceptance or that the new manufacturing processes will be successful, or that the suppliers will provide the Company with the quality or quantity of wafers and materials that the Company requires. The Company must continue to develop and introduce new products in a timely manner to counter the industry's historical trend of prices declining as products mature. Selling, General, and Administrative. First quarter selling, general, and administrative expenses of $23.3 million increased $7.9 million from a year ago, and $1.4 million from the prior quarter. The increase as compared to the prior year was due to increased commission and incentive expenses (on the increased sales volume), increased advertising and promotional expenditures, and increased salary expenses due to increased field sales, marketing, and administrative headcounts. Increased commission and incentive expenses and increased administrative expenses were the primary reasons for the increase compared to the prior quarter. As a percentage of revenue, first quarter selling, general, and administrative expenses at 17.0% were down from the prior year due to revenues increasing at a faster rate than expenses and were approximately at the same level as the fourth quarter of 1995. Selling expenses have increased compared to both last year and last quarter, driven by increased advertising and merchandising expenditures, higher commissions and incentives (on increased sales), and increased marketing and field sales headcounts. The Company uses three methods to market its products: sales through licensed domestic and foreign distributors, direct 9 10 sales to electronics manufacturers via independent sales representatives, and direct sales to customers by Altera sales department personnel. The Company has approximately twenty field sales offices. Approximately 80% percent of the Company's current worldwide sales are made through distributors. As a percentage of revenue, selling expenses were lower than they were in the prior quarter and in the quarter ended one year ago. Operating Income. First quarter 1996 operating income of $31.4 million, representing 22.9% of sales, was higher than the first quarter of 1995 and approximately the same as the most recent prior quarter on a percentage of revenue basis. The improvement compared to the first quarter of 1995 is attributed to the growth in revenues, which have grown faster than operating expenses. Interest and Other Income. Interest income decreased over last quarter and prior year as a result of decreased cash balances because of a $57.1 million payment made in January 1996 on a note payable to TSMC. Further, interest income was partially offset by interest expense of $3.0 million during the quarter related to the convertible notes issued in June 1995. Income Taxes. The Company's provision for income taxes was 36% in 1996 compared to 37% in 1995. The decrease in the income tax rate is primarily due to an increased amount of earned interest from tax exempt investments. Future Results. Future operating results depend on the Company's ability to develop, manufacture, and sell complicated semiconductor components and complex software that offer customers greater value than competing vendors. The Company's efforts in this regard may not be successful. Also, a number of factors outside of the Company's control, including general economic conditions and cycles in world markets, exchange rate fluctuations, or a lack of growth in the Company's end markets could impact future results. The Company is highly dependent upon subcontractors to manufacture silicon wafers and perform assembly and testing services. Disruptions or adverse supply conditions arising from market conditions, political strife, labor disruptions, natural or man-made disasters, other factors, and normal process variations could have a material adverse effect on the Company's future operating results. Competitive break-throughs, and particularly competitive pricing could also impact future operating results. Additionally, litigation relating to competitive patents and intellectual property could have an adverse impact on the Company's financial condition or operating results. The Company owns more than 50 United States patents and has additional pending United States patent applications on its semiconductor products. The Company also has technology licensing agreements with AMD, Cypress, Intel, and Texas Instruments giving the Company royalty-free rights to design, manufacture, and package products using certain patents they control. Other 10 11 companies have filed applications for, or have been issued, other patents and may develop, or obtain proprietary rights relating to, products or processes competitive with those of the Company. From time to time the Company may find it desirable to obtain additional licenses from the holders of patents relating to products or processes competitive with those of the Company. Although its patents and patent applications may have value in discouraging competitive entry into the Company's market segment and the Company believes that its current licenses will assist it in developing additional products, there can be no assurance that any additional patents will be granted to the Company, that the Company's patents will provide meaningful protection from competition, or that any additional products will be developed based on any of the licenses that the Company currently holds. The Company believes that its future success will depend primarily upon the technical competence and creative skills of its personnel, rather than on its patents, licenses, or other proprietary rights. The Company, in the normal course of business, from time-to-time receives and makes inquiries with respect to possible patent infringements. As a result of inquiries received from companies, it may be necessary or desirable for the Company to obtain additional licenses relating to one or more of its current or future products. There can be no assurance that such additional licenses could be obtained, and, if obtainable, could be obtained on conditions that would not have a material adverse effect on the Company's operating results. If the inquiring companies were to allege infringement of their patents, as is the case in the Company's current litigation with two of its competitors, there can be no assurance that any necessary licenses could be obtained, and, if obtainable, that such licenses would be on terms or conditions that would not have a material adverse effect on the Company. In addition, if litigation ensued, there can be no assurance that these companies would not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of one or more of the Company's product families. It may be necessary or desirable for the Company to incur significant litigation expenses to enforce its intellectual property rights. Liquidity and Capital Resources The Company's cash and investments increased by $15.5 million in the first quarter, from $365.2 million at the end of the fourth quarter of 1995 to $349.7 million at March 31, 1996. During the first quarter of 1996, in accordance with a note payable entered into in 1995, the Company paid a $57.1 million deposit to TSMC for future wafer capacity. In addition, the Company invested approximately $6.2 million in capital, mainly consisting of furniture and test equipment. The Company expects to invest approximately $65-70 million of additional capital during the remainder of 1996, including approximately $35-40 million for the construction of its corporate headquarters. Payments related to a joint venture currently under negotiation with TSMC are expected to aggregate $125 million, of which $75 million will likely be due in 1996 and the remainder in 1997. 11 12 The Company believes that its cash, cash equivalents, and short-term investments, combined with cash generated from ongoing operations, will be adequate to finance the Company's operations, notes payable, and capital investment needs for at least the next year. Impact of Currency and Inflation. The Company purchases the majority of its materials and services in U.S. Dollars, and most of its foreign sales are transacted in U.S. dollars. However, Altera does have Yen denominated purchase contracts with Sharp Corporation of Japan for processed silicon wafers. The Company historically has engaged in a variety of foreign exchange hedging strategies to mitigate the exposure from these Yen denominated purchases. This hedging has included the purchase of forward contracts and the use of offsetting Yen receipts. During 1996, the Company held no forward Yen contracts. Effects of inflation on Altera's financial results have not been significant. Safe Harbor Notice This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors described in this report and in the Company's Annual Report on Form 10-K on file with the Securities and Exchange Commission. 12 13 ALTERA CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1996 PART II OTHER INFORMATION 13 14 ITEM 3. LEGAL PROCEEDINGS. In June 1993, Xilinx, Inc. ("Xilinx") brought suit against the Company seeking monetary damages and injunctive relief based on the Company's alleged infringement of certain patents held by Xilinx. In June 1993, the Company brought suit against Xilinx, seeking monetary damages and injunctive relief based on Xilinx's alleged infringement of certain patents held by the Company. In April 1995, the Company filed a separate lawsuit against Xilinx in Delaware, Xilinx's state of incorporation, seeking monetary damages and injunctive relief based on Xilinx's alleged infringement of one of the Company's patents. In May 1995, Xilinx counterclaimed against the Company in Delaware, asserting defenses and seeking monetary damages and injunctive relief based on the Company's alleged infringement of certain patents held by Xilinx. A motion by Xilinx to transfer the Delaware cases to California has been granted. The California litigation is presently the subject of court-ordered mediation. Due to the nature of the litigation with Xilinx and because the lawsuits are still in the pre-trial stage, the Company's management cannot estimate the total expense, the possible loss, if any, or the range of loss that may ultimately be incurred in connection with the allegations. Management cannot ensure that Xilinx will not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of the Company's MAX 5000, MAX 7000, FLEX 8000, or MAX 9000 families of products, or succeed in invalidating any of the Company's patents. Although no assurances can be given as to the results of these cases, based on the present status, management does not believe that such results will have a material adverse effect on the Company's financial condition or results of operations. In August 1994, Advanced Micro Devices ("AMD") brought suit against the Company seeking monetary damages and injunctive relief based on the Company's alleged infringement of certain patents held by AMD. In September 1994, Altera answered the complaint asserting that it is licensed to use the patents which AMD claims are infringed and filed a counterclaim against AMD alleging infringement of certain patents held by the Company. The case has been bifurcated to provide that a separate trial on the issue of the scope of the existing cross license agreement between the parties will precede the trial on the infringement claims. Due to the nature of the litigation with AMD, and because the lawsuit is still in the pre-trial stage, the Company's management cannot estimate the total expense, the possible loss, if any, or the range of loss that may ultimately be incurred in connection with the allegations. Management cannot ensure that AMD will not succeed in obtaining significant monetary damages or an injunction against the manufacture and sale of the Classic, MAX 5000, MAX 7000, FLEX 8000, MAX 9000, FLEX 10K, and FLASHlogic product families, or succeed in invalidating any of the Company's patents. Although no assurances can be given as to the results of this case, based on its present status, management does not believe that such results will have a material adverse effect on the Company's financial condition or results of operations. 14 15 Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 11.1 Computation of earnings per share 27. Financial Data Schedule (b) Reports on Form 8-K None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALTERA CORPORATION /s/Nathan Sarkisian -------------------------------------- Nathan Sarkisian, Vice President (duly authorized officer), and Chief Financial Officer (principal financial officer) Date: May 6, 1996 15 EX-11 2 COMPUTATION OF EARNINGS PER SHARE 1 EXHIBIT 11 ALTERA CORPORATION COMPUTATION OF EARNINGS PER SHARE (In thousands, except per share amounts)
THREE MONTHS ENDED March 31, March 31, 1996 1995 ------- ------- PRIMARY: Weighted average shares outstanding 43,629 43,097 Net effect of dilutive stock options 2,339 1,965 ------- ------- Total 45,968 45,062 ======= ======= Net income $31,440 $15,097 ======= ======= Income per share $ 0.68 $ 0.34 ======= ======= FULLY DILUTED: Weighted average shares outstanding 43,629 43,097 Net effect of dilutive stock options 2,339 1,965 Assumed conversion of convertible subordinated notes 4,495 -- ------- ------- Total 50,463 45,062 ======= ======= Net income $31,440 $15,097 Add: Convertible subordinated notes interest, net of income 1,920 -- taxes ------- ------- Adjusted net income $33,360 $15,097 ======= ======= Income per share $ 0.66 $ 0.34 ======= =======
16 EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 102479 247187 60362 1460 75146 534134 100857 42922 735306 205705 239600 0 0 86817 203184 735306 137098 137098 53054 53054 35843 0 1920 49124 17684 31440 0 0 0 31440 0.68 0.66
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