Adaptec 2001 Annual Report Download - page 70

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70
The pro forma results of operations give effect to certain adjustments including amortization of
purchased intangibles, goodw ill and unearned compensation. Included in the pro forma net
income for the year ended December 31, 2000 is a $38.2 million charge for IPR& D. The pro
forma results do not include the results of operations for Octera because the effect of the
acquisition was not material. This information may not necessarily be indicative of the future
combined results of operations of the Company.
NOTE 3. Restructuri ng and Other Costs
Restructuring – March 26, 2001
In the first quarter of 2001, PM C implemented a restructuring plan in response to the decline in
demand for its networking products and consequently recorded a restructuring charge of $19.9
million. Prior to the end of the first quarter, management approved the restructuring plan
committing the Company to the termination of 223 employees, the consolidation of a number of
facilities and the curtailment of certain research and development projects. Employees
terminated under this plan were advised prior to the end of the quarter of the termination
benefits to w hich they were entitled.
The elements of the accrued restructuring costs related to the March 2001 restructuring plan are
as follows:
Workforce reduction includes the cost of severance and related benefits of 223 employees
affected by the restructuring. These terminations were spread across all business functions,
with approximately 70% occurring in Research and Development and the remainder occurring
in Sales, Marketing, Administrative and Production departments.
Year Ended December 31,
(in thousands, except for per share amounts) 2000 1999
Net revenues 696,094$ 297,643$
Net income (loss) 26,733$ (31,017)$
Pro forma basic earnings (loss) per share $ 0.16 $ (0.21)
Pro forma diluted earnings (loss) per share $ 0.15 $ (0.21)
Total Charge Noncash Cash Restructuring Liability at
(in thousands) March 26, 2001 Charges Payments December 31, 2001
Workforce reduction 9,367$ -$ $ (7,791) $ 1,576
Facility lease and contract settlement costs 6,545 - (3,917) 2,628
Write-down of property and equipment, net 3,988 (3,988) - -
Total 19,900$ (3,988)$ (11,708)$ 4,204$