Maxim Reports Record Revenues for Its Second Quarter 2006 and 10% Quarter over Quarter Bookings Growth.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif. -- Maxim Maxim (măk`sĭm), name of a family of inventors and munition makers. Sir Hiram Stevens Maxim, 1840–1916, was born near Sangerville, Maine. Integrated Products, Inc., (Nasdaq:MXIM) reported a record for net revenues of $445.9 million for its second quarter ending December December: see month. 24, 2005, a 5.1% increase over the $424.4 million reported for the first quarter of fiscal 2006. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income excluding stock based compensation expense for the quarter was $140.0 million or $0.42 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $112.6 million including stock based compensation or $0.33 diluted earnings per share. This compares to $133.2 million of pro forma net income or $0.39 diluted earnings per share reported for the first quarter of fiscal 2006 and GAAP net income of $105.4 million including stock based compensation or $0.31 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Gross bookings for its second quarter were approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $506 million, a 10% increase from the first quarter's level of $459 million. Gross turns orders received in the quarter were approximately $230 million, a 10% increase from the $208 million received in the prior quarter. Bookings increased in all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. locations. Second quarter ending backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. shippable within the next 12 months was approximately $370 million, including approximately $329 million requested for shipment in the third quarter of fiscal 2006. The Company's first quarter ending backlog shippable within the next 12 months was approximately $330 million, including approximately $296 million that was requested for shipment in the second quarter of fiscal 2006. Pro forma gross margin (excluding stock based compensation expense) for the second quarter was 70.2% and GAAP gross margin was 68.2% including stock based compensation of $9.2 million. Pro forma operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (excluding stock based compensation expense) for the second quarter was 44.1%. Pro forma research and development expense (excluding stock based compensation expense) was $92.6 million or 20.8% of net revenues in the second quarter and GAAP research and development expense was $116.9 million or 26.2% of net revenue including stock based compensation of $24.3 million. Pro forma selling, general and administrative expense (excluding stock based compensation expense) was $23.8 million in the second quarter or 5.3% of net revenues while GAAP selling, general and administrative expense was $31.1 million or 7.0% of net revenue including stock based compensation of $7.2 million. During the quarter, the Company repurchased 9.2 million shares of its common stock for $334.6 million, paid dividends of $40.0 million, and acquired $37.4 million in capital equipment. 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 increased $8.1 million in the second quarter to $221.0 million due to the increase in net revenues. Pro forma inventories (excluding stock based compensation expense) increased to $186.5 million from the previous quarter. GAAP reported inventories for the second quarter increased to $197.8 million and includes $11.3 million for stock based compensation. The Company expects to implement a program that will allow its employees, excluding officers, holding vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) stock options with an exercise price of at least $35 to exchange them for Restricted Stock Units Restricted stock units Similar to restricted stock. However, the unit represents a promise that employees will receive stock in the future. The units do not pay dividends until the stock is vested. (RSUs) vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: quarterly over the next 12 months at a specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. exchange rate derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. using the Black-Sholes model. In some cases, employees may elect to exchange these vested options for RSUs at a specified exchange rate that is greater than that derived using the Black-Sholes model and these RSUs will vest quarterly over the next 18 months. This program, details of which will soon be filed with the Securities and Exchange Commission (SEC) and communicated to those eligible to make an exchange, is designed to foster retention of our employees and to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. their interests with those of our stockholders. This exchange program may reduce the number of Maxim's Maxim's refers to several commercial enterprises:
v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. their goals with shareholders' interests. Employees holding stock options eligible for exchange in the program should carefully read the Company's Offer to Exchange certain stock options for RSU's, the Company's letter of transmittal Letter of Transmittal A document used by security holder to accompany certificates surrendered in an exchange or other corporate action. and related tender offer materials when they become available because they will contain important information, including, among other things, the various terms and conditions governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the program. Copies of the Company's Offer to Exchange certain stock options for RSU's, the letter of transmittal and related tender offer materials will soon be mailed to all employees holding stock options eligible for exchange in the program and, once filed with the SEC, may be obtained at no charge from the SEC's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Mr. Gifford commented: "Our second quarter performance is a positive reflection of our long term strategy which is to serve and gain market share in many analog industry market segments. We believe the future prospects for the analog industry are exciting and that we are well positioned for profitable growth." Mr. Gifford concluded: "The Company's Board of Directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend for the third quarter of fiscal 2006 of $0.125 per share. Payment will be made on February February: see month. 28, 2006 to stockholders of record on February 13, 2006." The following table reconciles free cash flow to net income, and depicts the Company's free cash flow for the three and six months ended December 24, 2005 and December 25, 2004.
RECONCILIATION OF FREE CASH FLOW TO NET INCOME
For the For the For the For the
three three six six
months months months months
in millions, except per share ended ended ended ended
data 12/24/05 12/25/04 12/24/05 12/25/04
--------- --------- --------- ---------
Net income as reported $ 112.6 $ 144.6 $ 218.0 $ 289.2
Add adjustments to reconcile
net income to net cash
provided by operating
activities:
Stock based compensation 40.8 - 82.3 -
Depreciation and
amortization 20.5 19.1 41.1 37.8
Tax benefit related to
stock plans 2.7 34.1 8.3 57.9
Accounts receivable (8.1) 20.8 (28.7) 17.5
Inventories (11.0) (10.8) (18.7) (28.8)
Accounts payable 12.3 (28.2) 20.8 (32.1)
Income taxes payable 0.1 (21.4) 19.6 4.0
Other assets and liabilities (33.2) (5.1) (29.8) 15.9
--------- --------- --------- ---------
Total of adjustments 24.1 8.5 94.9 72.2
--------- --------- --------- ---------
Cash generated by operating
activities, as reported 136.7 153.1 312.9 361.4
Adjustments:
Capital expenditures (37.4) (31.4) (55.4) (97.8)
Additional tax benefit
related to stock plans 5.0 - 21.3 -
--------- --------- --------- ---------
Free Cash Flow $ 104.3 $ 121.7 $ 278.8 $ 263.6
========= ========= ========= =========
Fully diluted shares, as GAAP
reported 337 343 341 344
Free cash flow per fully
diluted share $ 0.31 $ 0.35 $ 0.82 $ 0.77
========= ========= ========= =========
Fully diluted earnings per
share, as GAAP reported $ 0.33 $ 0.42 $ 0.64 $ 0.84
========= ========= ========= =========
Fully diluted shares, as pro
forma reported 335 343 339 344
Free cash flow per pro forma
diluted share $ 0.31 $ 0.35 $ 0.82 $ 0.77
========= ========= ========= =========
Fully diluted pro forma
earnings per share $ 0.42 $ 0.42 $ 0.81 $ 0.84
========= ========= ========= =========
Free cash flow should not be construed as a substitute for net
income or as a better measure of liquidity than cash flow from
operating activities, both of which are determined in accordance
with Generally Accepted Accounting Principles in the United States
(GAAP). Free cash flow excludes components that are significant in
understanding and assessing the Company's results of operations
and cash flows. In addition, free cash flow is not a term defined
by GAAP and as a result the Company's measure of free cash flow
might not be comparable to similarly titled measures used by other
companies.
Free cash flow is used by management to evaluate, assess, and
benchmark the Company's operating results, and the Company
believes that free cash flow is relevant and useful information
that is often widely used by analysts, investors, and other
interested parties in the semiconductor industry. Accordingly, the
Company is disclosing this information to permit a comprehensive
and objective analysis of the Company's operating performance, to
provide an additional measure of performance and liquidity, and to
provide additional information with respect to the Company's
ability to meet future share repurchases, dividend payments, and
working capital requirements.
Certain statements in this press release are 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risk and uncertainty. They include statements regarding the Company's profitability and business outlook and the Company's belief that the prospects for the analog industry are exciting and that the Company is well positioned for profitable growth, and the Company's expectation to implement a program that will allow its employees, excluding officers, holding vested stock options with an exercise price of at least $35 to exchange them for RSUs. Actual results could differ materially from those forecasted based upon, among other things, general market conditions and market developments that could adversely affect the growth of the mixed-signal analog market, such as declines in customer forecasts or greater than expected cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturns within the mixed-signal analog segment of the semiconductor market, as well as other risks described in the Company's Annual Report 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. for the fiscal year ended June June: see month. 25, 2005. All forward-looking statements included in this news release are made as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , based on the information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement. Maxim Integrated Products is a leading international supplier of quality analog and mixed-signal products for applications that require real world signal processing See DSP. .
----------------------------------------------------------------------
Reconciliation of GAAP
to Pro Forma Consolidated Balance Sheets
----------------------------------------------------------------------
12/24/2005
(In thousands) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (1) Pro Forma
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash
equivalents $ 148,466 $ - $ 148,466
Short-term
investments 1,192,930 - 1,192,930
----------------------------------------------------------------------
Total cash, cash
equivalents and
short-term
investments 1,341,396 - 1,341,396
----------------------------------------------------------------------
Accounts receivable,
net 221,029 - 221,029
Inventories 197,772 (11,272) 186,500
Deferred tax assets
and other current
assets 149,596 - 149,596
----------------------------------------------------------------------
Total current
assets 1,909,793 (11,272) 1,898,521
----------------------------------------------------------------------
Property, plant and
equipment, at cost,
less accumulated
depreciation 1,017,612 - 1,017,612
Other assets 29,628 - 29,628
----------------------------------------------------------------------
Total assets $ 2,957,033 $ (11,272) $ 2,945,761
----------------------------------------------------------------------
Liabilities and
Stockholders'
Equity
Current liabilities:
Accounts payable $ 77,042 $ - $ 77,042
Accrued expenses 173,574 (628) 172,946
Deferred income on
shipments to
distributors 19,400 - 19,400
Income taxes payable 52,775 - 52,775
----------------------------------------------------------------------
Total current
liabilities 322,791 (628) 322,163
----------------------------------------------------------------------
Deferred tax
liabilities 118,636 26,939 145,575
----------------------------------------------------------------------
Total liabilities 441,427 26,311 467,738
----------------------------------------------------------------------
Stockholders' equity:
Common stock 81,223 (44,023) 37,200
Retained earnings 2,443,976 6,440 2,450,416
Accumulated other
comprehensive loss (9,593) - (9,593)
----------------------------------------------------------------------
Total stockholders'
equity 2,515,606 (37,583) 2,478,023
----------------------------------------------------------------------
Total liabilities
and stockholders'
equity $ 2,957,033 $ (11,272) $ 2,945,761
----------------------------------------------------------------------
6/25/2005
(In thousands) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (2) Pro Forma
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash
equivalents $ 185,551 $ - $ 185,551
Short-term
investments 1,289,141 - 1,289,141
----------------------------------------------------------------------
Total cash, cash
equivalents and
short-term
investments 1,474,692 - 1,474,692
----------------------------------------------------------------------
Accounts receivable,
net 192,345 - 192,345
Inventories 167,779 - 167,779
Deferred tax assets
and other current
assets 138,950 - 138,950
----------------------------------------------------------------------
Total current
assets 1,973,766 - 1,973,766
----------------------------------------------------------------------
Property, plant and
equipment, at cost,
less accumulated
depreciation 1,001,465 - 1,001,465
Other assets 28,840 - 28,840
----------------------------------------------------------------------
Total assets $ 3,004,071 $ - $ 3,004,071
----------------------------------------------------------------------
Liabilities and
Stockholders'
Equity
Current liabilities:
Accounts payable $ 56,266 $ - $ 56,266
Accrued expenses 175,539 - 175,539
Deferred income on
shipments to
distributors 20,225 - 20,225
Income taxes payable 33,173 - 33,173
----------------------------------------------------------------------
Total current
liabilities 285,203 - 285,203
----------------------------------------------------------------------
Deferred tax
liabilities 134,686 - 134,686
----------------------------------------------------------------------
Total liabilities 419,889 - 419,889
----------------------------------------------------------------------
Stockholders' equity:
Common stock 134,998 - 134,998
Retained earnings 2,455,714 - 2,455,714
Accumulated other
comprehensive loss (6,530) - (6,530)
----------------------------------------------------------------------
Total stockholders'
equity 2,584,182 - 2,584,182
----------------------------------------------------------------------
Total liabilities
and stockholders'
equity $ 3,004,071 $ - $ 3,004,071
----------------------------------------------------------------------
(1) Adjustments consist of stock-based compensation and the related
tax effect under FAS 123(R).
FAS 123(R) requires the Company to estimate the cost of all forms of
employee stock-based compensation, including employee stock options
and awards under our employee stock purchase plan, and to record a
commensurate expense (which is subjective in nature) in the income
statement. We are showing pro forma (non-GAAP) consolidated balance
sheets, which are adjusted to reflect the GAAP results to exclude all
stock-based compensation expense. This pro forma presentation is given
in part to enhance the understanding of the Company's historical
financial performance and comparability between periods in light of a
change in accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and many companies have not yet adopted FAS 123(R).
In addition, the Company strongly believes that the pro forma
presentation to exclude stock-based compensation is relevant and
useful information that will be widely used by analysts, investors,
and other interested parties in the semiconductor industry.
Accordingly, the Company is disclosing this information to permit
additional analysis of the Company's performance.
(2) As of June 25, 2005, no FAS 123(R) stock-based compensation was
recorded.
----------------------------------------------------------------------
Reconciliation of GAAP
to Pro Forma Consolidated Statements of Income
----------------------------------------------------------------------
Three Months Ended
(In thousands except 12/24/2005
per share data) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (1) Pro Forma
----------------------------------------------------------------------
Net revenues $ 445,881 $ - $ 445,881
Cost of goods sold 141,937 (9,222) 132,715
----------------------------------------------------------------------
Gross margin 303,944 9,222 313,166
68.2% 70.2%
----------------------------------------------------------------------
Operating expenses:
Research and
development 116,878 (24,324) 92,554
Selling, general and
administrative 31,053 (7,248) 23,805
----------------------------------------------------------------------
Operating income 156,013 40,794 196,807
35.0% 44.1%
Interest income, net 11,236 - 11,236
----------------------------------------------------------------------
Income before
provision for
income taxes 167,249 40,794 208,043
Provision for income
taxes 54,691 13,340 68,031
----------------------------------------------------------------------
Net income $ 112,558 $ 27,454 $ 140,012
----------------------------------------------------------------------
Basic earnings per
share $ 0.35 $ 0.08 $ 0.43
----------------------------------------------------------------------
Shares used in the
calculation of basic
earnings per share 323,935 - 323,935
----------------------------------------------------------------------
Diluted earnings per
share $ 0.33 $ 0.08 $ 0.42
----------------------------------------------------------------------
Shares used in the
calculation of
diluted earnings per
share 337,429 (2,259) 335,170
----------------------------------------------------------------------
Dividends declared per
share $ 0.125 $ - $ 0.125
----------------------------------------------------------------------
Three Months Ended
(In thousands except 12/25/2004
per share data) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (2) Pro Forma
----------------------------------------------------------------------
Net revenues $ 436,061 $ - $ 436,061
Cost of goods sold 119,437 - 119,437
----------------------------------------------------------------------
Gross margin 316,624 - 316,624
72.6% 72.6%
----------------------------------------------------------------------
Operating expenses:
Research and
development 81,035 - 81,035
Selling, general and
administrative 25,324 - 25,324
----------------------------------------------------------------------
Operating income 210,265 - 210,265
48.2% 48.2%
Interest income, net 6,225 - 6,225
----------------------------------------------------------------------
Income before
provision for
income taxes 216,490 - 216,490
Provision for income
taxes 71,875 - 71,875
----------------------------------------------------------------------
Net income $ 144,615 $ - $ 144,615
----------------------------------------------------------------------
Basic earnings per
share $ 0.44 $ - $ 0.44
----------------------------------------------------------------------
Shares used in the
calculation of basic
earnings per share 325,660 - 325,660
----------------------------------------------------------------------
Diluted earnings per
share $ 0.42 $ - $ 0.42
----------------------------------------------------------------------
Shares used in the
calculation of
diluted earnings per
share 343,226 - 343,226
----------------------------------------------------------------------
Dividends declared per
share $ 0.10 $ - $ 0.10
----------------------------------------------------------------------
(1) Adjustments consist of stock-based compensation, related tax
effect, and the impact on the Treasury Stock Method under FAS 123(R).
FAS 123(R) requires the Company to estimate the cost of all forms of
employee stock-based compensation, including employee stock options
and awards under our employee stock purchase plan, and to record a
commensurate expense (which is subjective in nature) in the income
statement. We are showing pro forma (non-GAAP) consolidated balance
sheets, which are adjusted to reflect the GAAP results to exclude all
stock-based compensation expense. This pro forma presentation is given
in part to enhance the understanding of the Company's historical
financial performance and comparability between periods in light of a
change in accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and many companies have not yet adopted FAS 123(R).
In addition, the Company strongly believes that the pro forma
presentation to exclude stock-based compensation is relevant and
useful information that will be widely used by analysts, investors,
and other interested parties in the semiconductor industry.
Accordingly, the Company is disclosing this information to permit
additional analysis of the Company's performance.
(2) For the three months ended December 25, 2004, no FAS 123(R)
stock-based compensation was recorded.
----------------------------------------------------------------------
Reconciliation of GAAP
to Pro Forma Consolidated Statements of Income
----------------------------------------------------------------------
Six Months Ended
(In thousands except 12/24/2005
per share data) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (1) Pro Forma
----------------------------------------------------------------------
Net revenues $ 870,245 $ - $ 870,245
Cost of goods sold 274,552 (19,676) 254,876
----------------------------------------------------------------------
Gross margin 595,693 19,676 615,369
68.5% 70.7%
----------------------------------------------------------------------
Operating expenses:
Research and
development 233,931 (50,802) 183,129
Selling, general and
administrative 59,918 (11,775) 48,143
----------------------------------------------------------------------
Operating income 301,844 82,253 384,097
34.7% 44.1%
Interest income, net 22,203 - 22,203
----------------------------------------------------------------------
Income before
provision for
income taxes 324,047 82,253 406,300
Provision for income
taxes 106,121 26,939 133,060
----------------------------------------------------------------------
Net income $ 217,926 $ 55,314 $ 273,240
----------------------------------------------------------------------
Basic earnings per
share $ 0.67 $ 0.17 $ 0.84
----------------------------------------------------------------------
Shares used in the
calculation of basic
earnings per share 325,832 - 325,832
----------------------------------------------------------------------
Diluted earnings per
share $ 0.64 $ 0.16 $ 0.81
----------------------------------------------------------------------
Shares used in the
calculation of
diluted earnings per
share 340,715 (2,054) 338,661
----------------------------------------------------------------------
Dividends declared per
share $ 0.225 $ - $ 0.225
----------------------------------------------------------------------
Six Months Ended
(In thousands except 12/25/2004
per share data) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (2) Pro Forma
----------------------------------------------------------------------
Net revenues $ 871,128 $ - $ 871,128
Cost of goods sold 239,689 - 239,689
----------------------------------------------------------------------
Gross margin 631,439 - 631,439
72.5% 72.5%
----------------------------------------------------------------------
Operating expenses:
Research and
development 160,132 - 160,132
Selling, general and
administrative 50,386 - 50,386
----------------------------------------------------------------------
Operating income 420,921 - 420,921
48.3% 48.3%
Interest income, net 11,954 - 11,954
----------------------------------------------------------------------
Income before
provision for
income taxes 432,875 - 432,875
Provision for income
taxes 143,715 - 143,715
----------------------------------------------------------------------
Net income $ 289,160 $ - $ 289,160
----------------------------------------------------------------------
Basic earnings per
share $ 0.89 $ - $ 0.89
----------------------------------------------------------------------
Shares used in the
calculation of basic
earnings per share 325,164 - 325,164
----------------------------------------------------------------------
Diluted earnings per
share $ 0.84 $ - $ 0.84
----------------------------------------------------------------------
Shares used in the
calculation of
diluted earnings per
share 344,051 - 344,051
----------------------------------------------------------------------
Dividends declared per
share $ 0.18 $ - $ 0.18
----------------------------------------------------------------------
(1) Adjustments consist of stock-based compensation, related tax
effect, and the impact on the Treasury Stock Method under FAS 123(R).
FAS 123(R) requires the Company to estimate the cost of all forms of
employee stock-based compensation, including employee stock options
and awards under our employee stock purchase plan, and to record a
commensurate expense (which is subjective in nature) in the income
statement. We are showing pro forma (non-GAAP) consolidated balance
sheets, which are adjusted to reflect the GAAP results to exclude all
stock-based compensation expense. This pro forma presentation is given
in part to enhance the understanding of the Company's historical
financial performance and comparability between periods in light of a
change in accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and many companies have not yet adopted FAS 123(R).
In addition, the Company strongly believes that the pro forma
presentation to exclude stock-based compensation is relevant and
useful information that will be widely used by analysts, investors,
and other interested parties in the semiconductor industry.
Accordingly, the Company is disclosing this information to permit
additional analysis of the Company's performance.
(2) For the six months ended December 25, 2004, no FAS 123(R)
stock-based compensation was recorded.
----------------------------------------------------------------------
Reconciliation of GAAP to Pro Forma
Consolidated Statements of Income
----------------------------------------------------------------------
Three Months Ended
(In thousands except 9/24/2005
per share data) (unaudited)
----------------------------------------------------------------------
GAAP Adjustments (1) Pro Forma
----------------------------------------------------------------------
Net revenues $ 424,364 $ - $ 424,364
Cost of goods sold 132,615 (10,454) 122,161
----------------------------------------------------------------------
Gross margin 291,749 10,454 302,203
68.7% 71.2%
----------------------------------------------------------------------
Operating expenses:
Research and
development 117,053 (26,478) 90,575
Selling, general and
administrative 28,865 (4,527) 24,338
----------------------------------------------------------------------
Operating income 145,831 41,459 187,290
34.4% 44.1%
Interest income, net 10,967 - 10,967
----------------------------------------------------------------------
Income before
provision for
income taxes 156,798 41,459 198,257
Provision for income
taxes 51,430 13,599 65,029
----------------------------------------------------------------------
Net income $ 105,368 $ 27,860 $ 133,228
----------------------------------------------------------------------
Basic earnings per
share $ 0.32 $ 0.08 $ 0.41
----------------------------------------------------------------------
Shares used in the
calculation of basic
earnings per share 327,959 - 327,959
----------------------------------------------------------------------
Diluted earnings per
share $ 0.31 $ 0.08 $ 0.39
----------------------------------------------------------------------
Shares used in the
calculation of
diluted earnings per
share 344,860 (2,218) 342,642
----------------------------------------------------------------------
Dividends declared per
share $ 0.10 $ - $ 0.10
----------------------------------------------------------------------
(1) Adjustments consist of stock-based compensation, related tax
effect, and the impact on the Treasury Stock Method under FAS 123(R).
FAS 123(R) requires the Company to estimate the cost of all forms of
employee stock-based compensation, including employee stock options
and awards under our employee stock purchase plan, and to record a
commensurate expense (which is subjective in nature) in the income
statement. We are showing pro forma (non-GAAP) consolidated balance
sheets, which are adjusted to reflect the GAAP results to exclude all
stock-based compensation expense. This pro forma presentation is given
in part to enhance the understanding of the Company's historical
financial performance and comparability between periods in light of a
change in accounting standards particularly since the Company has not
included stock-based compensation as an expense in its financial
statements before and many companies have not yet adopted FAS 123(R).
In addition, the Company strongly believes that the pro forma
presentation to exclude stock-based compensation is relevant and
useful information that will be widely used by analysts, investors,
and other interested parties in the semiconductor industry.
Accordingly, the Company is disclosing this information to permit
additional analysis of the Company's performance.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion