Andrew Corporation Reports Third Quarter Fiscal 2007 Results.WESTCHESTER, Ill. -- Third Quarter Fiscal 2007 Highlights * Total sales decreased 1% to $546 million, compared to $551 million in the prior year third quarter * Wireless Infrastructure sales were $523 million, compared to $524 million in the prior year third quarter * Gross margin was 20.7%, compared to 22.1% in the prior year third quarter. Excluding relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. and start-up costs associated with the new Joliet, Illinois The city of Joliet is located 40 miles southwest of Chicago. It holds the county seat of Will County and is also incorporated in Kendall County. As of the 2000 census, the city had a total population of 106,221. facility, non-GAAP gross margin was 21.6% * Net loss was $0.61 per share, including $0.72 per share of significant items * Non-cash goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $108 million, or $0.69 per share, was recorded in the quarter for Base Station Subsystems The Base Station Subsystem (BSS) is the section of a traditional cellular telephone network which is responsible for handling traffic and signaling between a mobile phone and the Network Switching Subsystem. * Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $12 million, compared to $25 million in the prior year third quarter * Announced on June 27, 2007 that CommScope, Inc. (NYSE NYSE See: New York Stock Exchange :CTV CTV Canadian Television (Network Limited) ) will acquire Andrew for $2.6 billion, or $15 per share, at least 90 percent in cash; transaction expected to close before the end of 2007 Andrew Corporation Andrew Corporation is an American multinational producer of communications devices. Andrew is a global designer, manufacturer, and supplier of communications equipment, services, and systems. , a global leader in communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. and products, reported total sales of $546 million for the third quarter fiscal 2007, compared to $551 million in the prior year third quarter. Wireless Infrastructure sales were $523 million, compared to $524 million in the prior year third quarter, due to ongoing challenges in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, which were partially offset by strong growth in emerging markets. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the company reported a net loss of $96 million, or $0.61 per share for the third quarter, including $0.72 per share of significant items, compared to net income of $7 million, or $0.04 per share, including $0.05 per share of significant items in the prior year third quarter. Excluding significant items, non-GAAP earnings were $0.11 per share for the third quarter, compared to $0.09 per share for the prior year third quarter. "Andrew continued to benefit from record sales growth in several emerging markets such as India, however, demand in the North American market remained sluggish during our third quarter due to ongoing weaker spending from a key operator and an original equipment manufacturer (OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and ) customer in this region," said Ralph Faison, president and chief executive officer, Andrew Corporation. "Consistent with our comments throughout fiscal 2007, we have seen a reduction in sales from these two key customers, and year-to-date, sales to these customers decreased by approximately $200 million year over year. However, we are confident that we have maintained our market position with these customers and anticipate that they will increase their level of spending in future periods. Overall, we are pleased with the sequential improvement in sales in the quarter, and our book-to-bill as we entered our fourth quarter was positive." Due to the significant losses generated by the Base Station Subsystems segment in the first six months of fiscal 2007, the company had previously determined that an indicator of goodwill impairment existed as of March 31, 2007. Based on the completion of required "step-two" impairment testing, the company recognized a non-cash goodwill impairment loss of $108 million during the quarter. The Base Station Subsystems segment had approximately $412 million of goodwill as of March 31, 2007. "Our results in Base Station Subsystems have been significantly impacted by customer consolidation over the past several quarters," said Faison. "While we believe that our customer relationships and product technology in this segment will help deliver sustainable improvement in future quarters, due to the amount of recorded goodwill, recognizing an impairment loss was required upon completion of our analysis. We continue to strive to generate an adequate return from all of our product lines and anticipate that the pending transaction with CommScope will provide further opportunity to continue to rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear our overall product portfolio." The following table is a summary of significant items impacting the comparability of earnings per share amounts for the fiscal quarters ended June 30, 2007 and June 30, 2006. The per share impact of items for the current quarter is calculated on a pre-tax basis, as no tax benefit was recognized for losses in the U.S. and Italy. There were approximately 156 million shares outstanding during the quarter. For the prior year third quarter, an effective tax rate of 51.1% was used and there were approximately 160 million shares outstanding. [TABLE OMITTED] Third Quarter Financial Summary Wireless Infrastructure sales decreased slightly to $523 million from $524 million due to weaker sales of certain base station components, which was partially offset by strong demand for antenna and cable products, the implementation of price increases on cable products and a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign exchange impact. Total orders of $568 million decreased 6% from the prior year third quarter due mainly to a reduction in orders for active products, which was partially offset by an increase in orders for antenna and cable products. Orders were down in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , partially offset by strong orders in Asia Pacific and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . Ending backlog was $312 million compared to $367 million in the prior year third quarter. The company completed its transition from the Orland Park Or·land Park A village of northeast Illinois, a residential and manufacturing suburb of Chicago. Population: 53,300. facility to its new Joliet, Illinois cable facility during the quarter. Approximately $5 million of relocation and start-up costs were incurred during the quarter, which reduced gross margin by approximately 90 basis points. The total Joliet relocation and start-up costs in the second and third quarters were below the company's previous forecast by approximately $3 million due to lower unabsorbed overhead than was originally expected. Gross margin was 20.7% in the third quarter. Excluding these costs, non-GAAP gross margin was 21.6%, compared to 22.1% in the prior year third quarter, primarily as a result of a less favorable product line and geographic sales mix sales mix See product mix. significantly impacted by a year-to-date reduction of approximately $200 million in revenues from two key North American customers. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was $85.7 million, or (15.7)% of sales, compared to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $18.0 million, or 3.3% of sales in the prior year third quarter. Excluding significant items, non-GAAP operating income for the quarter was $28.0 million, or 5.1% of sales, compared to $27.6 million, or 5.0% of sales, in the prior year third quarter. Research and development expenses were $29.0 million, or 5.3% of sales, in the third quarter, compared to $28.4 million, or 5.2% of sales, in the prior year third quarter. Sales and administrative expenses decreased to $60.9 million, or 11.1% of sales, in the third quarter, compared to $65.6 million, or 11.9% of sales, in the prior year third quarter. Sales and administrative expenses decreased in absolute dollars and as a percentage of sales due mainly to the company's sale of its broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). cable business in April 2007, lower provisions for bad debts and reduced incentive compensation. Intangible amortization decreased to $4.6 million in the third quarter, compared to $4.7 million in the prior year third quarter and other expenses decreased to $3.2 million in the third quarter, compared to $3.8 million in the prior year third quarter. Gain on sale of assets increased to $6.0 million, compared to $0.3 million in the prior year third quarter due primarily to a real estate transaction and a gain on the company's sale of its broadband cable business to Andes Industries in April 2007. The reported tax provision for the third quarter was $6.8 million. The tax provision for the third quarter was unfavorably impacted by losses in the U.S. and Italy for which the company cannot record current tax benefits. Although the company continues to experience losses in the U.S. and Italy, there was a more favorable mix of earnings and losses by taxing jurisdiction during the third quarter compared to the first half of fiscal 2007. The reported tax provision for the prior year third quarter was $7.3 million. Average shares outstanding decreased to approximately 156 million from approximately 160 million in the prior year third quarter primarily due to shares that have been repurchased by the company. The company has repurchased 4.4 million shares over the last twelve months. Satellite Communications On May 3, 2007, the company announced its intent to sell the Satellite Communications business. The final terms of any divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). transaction are subject to various approvals, and there can be no assurance as to the terms, timing or consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of any such transaction. If a sale of the Satellite Communications business had been completed as of the beginning of the third quarter of fiscal 2007, the company estimates its summary operating results would have been as follows:
> > Fiscal >
> > June, >
> > As Repo- >
Ex SatCom
($ In millions) > > GAAP >
SatCom
Non-GAAP
Sales > > $ 546 >
$ 23
$ 523
Gross Profit > > 113 >
1
112
- % > > 20.7% >
4.3%
21.4%
Operating Expenses > > 198 >
6
192
Operating Loss > > $ (86) >
$ (5)
$ (81)
Net Loss per Share > > $ (0.61) >
$ (0.03)
$ (0.58)
These financial results do not reflect any potential impairment charge or transaction expenses that could result from any potential divestiture. Results by Major Region, Reporting Segment and Customer Information The company has provided additional financial details for the third quarter of fiscal 2007 in the tables below: [TABLE OMITTED] Sales in the Americas decreased 20% versus the prior year third quarter due mainly to continued weakness in the U.S., which was partially offset by sales growth in Latin America. The company continued to experience a reduction in demand by two key customers, which was partially offset by growth from other operators supporting network upgrades. EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. increased 14% from the prior year third quarter due to strength in the U.K. and the Middle East and a favorable impact of approximately $8.5 million resulting from a weaker U.S. dollar compared to European currencies. Asia Pacific increased 29% versus the prior year third quarter due mainly to continued strong demand in India and a favorable impact of approximately $4.7 million resulting from a weaker U.S. dollar compared to currencies in the Asia Pacific region. [TABLE OMITTED] Antenna and Cable Products sales increased 11% versus the prior year third quarter due mainly to cable price increases and strong sales of antenna products, including approximately $11 million of additional revenue from the acquisition of EMS Wireless. Satellite Communications sales decreased 15% versus the prior year third quarter due primarily to decreased direct-to-home satellite product sales. Base Station Subsystems sales decreased 25% versus the prior year third quarter due primarily to weakness in certain base station components to an OEM customer who was in the process of consolidating, and a decrease in sales to a North American operator, which was partially offset by an increase in power amplifier Power amplifier The final stage in multistage amplifiers, such as audio amplifiers and radio transmitters, designed to deliver appreciable power to the load. sales to operators. Network Solutions sales increased 5% versus the prior year third quarter due mainly to an increase in international geolocation equipment sales, which was partially offset by a decrease in sales of E-911 related geolocation equipment in North America. Wireless Innovations sales decreased 4% due to a decline in project-oriented sales for distributed coverage solutions which was partially offset by an increase in repeater (1) A communications device that amplifies (analog) or regenerates (digital) the data signal in order to extend the transmission distance. Available for both electronic and optical signals, repeaters are used extensively in long distance transmission. sales. Customer Information The top 25 customers represented 73% of sales in the third quarter, compared to 70% in the prior quarter and 71% in the prior year third quarter. Major OEMs accounted for 45% of sales in the third quarter, compared to 41% in the prior quarter and 37% in the prior year third quarter. Ericsson and Nokia Siemens each represented more than 10% of the company's sales for the quarter and Alcatel-Lucent represented more than 5% of the company's sales for the quarter. In the prior year third quarter, Cingular Wireless, now AT&T, represented 13% of sales. [TABLE OMITTED] Antenna and Cable Products operating income decreased due mainly to lower gross margins resulting from the Joliet relocation and start-up costs and an unfavorable revenue and geographic mix, which were partially offset by an increase in segment sales. Satellite Communications operating loss was lower versus the prior year third quarter as higher gross margin was partially offset by lower revenues. Base Station Subsystems operating loss increased versus the prior year third quarter due mainly to the goodwill impairment loss recorded in the quarter, which resulted from significant weakness in base station component sales to consolidating OEM customers in North America and EMEA and a decline in sales to certain North American operators. Network Solutions operating income was flat versus the prior year third quarter due mainly to less favorable product and geographic mix, which was partially offset by lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Wireless Innovations operating income decreased versus the prior year third quarter due mainly to a 4% decrease in segment sales, which was partially offset by improved gross margin. Goodwill Impairment As a result of the significant losses generated by Base Station Subsystems in the first six months of fiscal 2007, the company determined that a potential indicator of impairment had occurred and an interim test for impairment was required. The company performed "step one" of the goodwill impairment test, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards 142, on this reporting unit as of March 31, 2007. Based on that test, the company determined that the fair value of the reporting unit was less than the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. . The company has completed "step two" of the impairment test and has recognized a non-cash impairment loss of $108 million in the third quarter to write down the carrying value of goodwill. Balance Sheet and Cash Flow Highlights Cash flow from operations was $12.2 million in the third quarter, compared to $24.5 million in the prior year third quarter. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying were $552 million and days' sales outstanding Days' sales outstanding Average collection period. (DSOs) were 89 days at June 30, 2007, compared to $512 million and 90 days at March 31, 2007. Inventories were $389 million and inventory turns were 4.5x at June 30, 2007, compared to $398 million and 4.0x at March 31, 2007. Inventories decreased and inventory turns improved compared to the prior quarter due partially to increased sales and the completed relocation of the company's Orland Park, Illinois Orland Park is a village in Cook County, Illinois, United States; it also extends slightly into Will County. The population was 51,077 at the 2000 census, and estimated to be 55,461 as of 2005. facility to Joliet, Illinois. Capital expenditures decreased to $14.4 million in the third quarter compared to $17.7 million in the prior year third quarter primarily due to the completion of two significant cable and antenna facility moves during fiscal 2007. Cash and cash equivalents were $119 million at June 30, 2007, compared to $127 million at March 31, 2007. Cash and cash equivalents decreased from the prior quarter due mainly to the reduction of approximately $16 million in outstanding debt. Total debt outstanding and debt to capital were $351 million and 19.6% at June 30, 2007, compared to $366 million and 19.5% at March 31, 2007. Fiscal 2007 Sales Outlook Due to the pending acquisition of Andrew by CommScope, Inc. (NYSE:CTV), which was announced on June 27, 2007, the company is providing the following sales guidance, but will not be providing any other guidance. Accordingly, previous estimates of future financial or operational performance should be considered obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. . Sales are now anticipated to range from $2.15 billion to $2.20 billion for fiscal 2007, compared to the previous guidance of $2.20 billion to $2.30 billion. The revised sales guidance is primarily due to anticipated continuation of reduced spending by two key customers, compared to previous expectations, in the fourth quarter. Attached to this news release is preliminary unaudited financial information for the third quarter fiscal 2007. Conference Call As previously announced, due to the pending acquisition of Andrew by CommScope, the company will not hold a conference call or webcast to discuss third quarter fiscal 2007 results. About Andrew Andrew Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ANDW) designs, manufactures and delivers innovative and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 35 countries. Andrew (www.andrew.com), headquartered in Westchester, IL, is an S&P MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 company founded in 1937. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements regarding, among other things, the proposed business combination between CommScope and Andrew and the anticipated consequences and benefits of such transaction, and other financial and operational items relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc CommScope and Andrew. Statements made in the future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future , and statements using words such as "intend," "goal," "estimate," "expect," "expectations," "project," "projections," "plans," "anticipates," "believe," "think," "confident" and "scheduled" and similar expressions are intended to identify forward-looking statements and include, among others, statements in the introduction and statements under the captions "Third Quarter Financial Summary", "Balance Sheet and Cash Flow Highlights" and "Fiscal 2007 Sales Outlook". Forward-looking statements are not a guarantee of performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and are beyond the control of CommScope or Andrew. These risks and uncertainties could cause actual results to differ materially from those expressed in or implied by the forward-looking statements, and therefore should be carefully considered. Relevant risks and uncertainties relating to the proposed transaction include, but are not limited to: the risk that required regulatory review and approval may not be obtained in a timely manner, if at all; Andrew's shareholders may not approve the proposed transaction; the anticipated benefits and synergies of the proposed transaction may not be realized; the integration of Andrew's operations with CommScope could be materially delayed or may be more costly or difficult than expected; the proposed transaction may not be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. ; legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. may be commenced by or against CommScope or Andrew. Relevant risks and uncertainties generally applicable to CommScope and Andrew include, but are not limited to: changes in cost and availability of key raw materials and the ability to recover these costs from customers through price increases; customer demand for products and the ability to maintain existing business alliances with key customers or distributors; the risk that internal production capacity and that of contract manufacturers may be insufficient to meet customer demand for products; the risk that customers might cancel orders cancel order A customer order to a broker that cancels an earlier, unfilled order given by the customer. placed or that orders currently placed may affect order levels in the future; continuing consolidation among customers; competitive pricing and acceptance of products; industry competition and the ability to retain customers through product innovation; possible production disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. due to supplier or contract manufacturer bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most , reorganization or restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). ; successful ongoing operation of our vertical integration activities; ability to achieve expected sales, growth and earnings goals; costs of protecting or defending intellectual property; ability to obtain capital on commercially reasonable terms; regulatory changes affecting us or the industries we serve. For a more complete description of factors that could cause such a difference, please see CommScope's filings with the Securities and Exchange Commission (SEC), which are available on CommScope's website or at www.sec.gov, and Andrew's filings with the SEC, which are available on Andrew's website or at www.sec.gov. In providing forward-looking statements, neither CommScope nor Andrew intends, and neither undertakes any duty or obligation, to update these statements as a result of new information, future events or otherwise. Additional Information In connection with the proposed merger, CommScope intends to file a registration statement with the SEC on Form S-4 and CommScope and Andrew expect to mail a proxy statement/prospectus to Andrew's stockholders containing information about the merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. The registration statement and the proxy statement/prospectus will contain important information about CommScope, Andrew, the merger, and related matters. Investors and security holders will be able to obtain free copies of these documents through the web site maintained by the SEC at www.sec.gov. In addition to the registration statement and the proxy statement/prospectus, CommScope and Andrew file annual, quarterly, and special reports, proxy statements Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. , and other information with the SEC. Printed copies of these documents can also be obtained free of charge (other than a reasonable duplicating charge for exhibits to our reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. ) by any stockholder who requests them from either CommScope's or Andrew's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department: [TABLE OMITTED] CommScope, Andrew and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from Andrew stockholders in connection with the proposed transaction. Information about CommScope's directors and executive officers and their ownership of CommScope common stock is set forth in the definitive proxy statement for CommScope's 2007 annual meeting of stockholders, as filed by CommScope with the SEC on Schedule 14A on March 16, 2007. Information about Andrew's directors and executive officers and their ownership of Andrew common stock is set forth in the definitive proxy statement for Andrew's 2007 annual meeting of stockholders, as filed by Andrew with the SEC on Schedule 14A on December 29, 2006. Other information regarding the participants in the proxy solicitation will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Non-GAAP Financial Measures This news release contains certain non-GAAP financial measures, which are financial measures of Andrew's performance that exclude or include amounts thereby differentiating these measures from the most directly comparable amounts presented in the financial statements that are calculated and presented in accordance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). Andrew believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. of supplemental information used by management in its financial and operational decision making. Below are reconciliations of the non-GAAP financial measures used in this news release to the most directly comparable GAAP measures. [TABLE OMITTED] The following table shows the company's reconciliation of GAAP to non-GAAP gross margin for the fiscal quarter ended June 30, 2007 and June 30, 2006. [TABLE OMITTED] The following table shows the company's reconciliation of GAAP to non-GAAP operating income for the fiscal quarter ended June 30, 2007 and June 30, 2006. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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