Adaptec 2006 Annual Report Download - page 41

Table of Contents
Quarterly Comparisons
The following tables set forth the consolidated statements of operations for each of our last eight quarters. This quarterly information is derived from unaudited
interim financial statements and has been prepared on the same basis as the annual Consolidated Financial Statements. In management’s opinion, this quarterly
information reflects all adjustments necessary for fair presentation of the information for the periods presented. The operating results for any quarter are not
necessarily indicative of results for any future period.
Quarterly Data
(in thousands except for per share data)
Year Ended December 31, 2006 Year Ended December 31, 2005
Fourth (1) Third (2) Second (3) First (4) Fourth (5) Third (6) Second (7) First (8)
STATEMENT OF OPERATIONS DATA:
Net revenues $ 101,917 $ 116,514 $ 118,780 $ 87,781 $ 77,556 $ 76,203 $ 71,541 $ 66,111
Cost of revenues 37,125 39,146 43,560 26,625 19,839 20,131 21,372 19,621
Gross profit 64,792 77,368 75,220 61,156 57,717 56,072 50,169 46,490
Research and development 41,713 41,611 41,587 33,749 30,643 27,205 29,456 31,416
Selling, general and administrative 26,362 29,235 27,174 19,593 14,968 14,839 13,466 13,004
Amortization of purchased intangible assets 10,136 11,202 9,934 2,110 — — — —
In-process research and development — — 20,500 14,800 — — — —
Restructuring costs and other charges 453 6,404 — (738) — 5,359 7,606 868
(Loss) income from operations (13,872) (11,084) (23,975) (8,358) 12,106 8,669 (359) 1,202
Interest income, net 2,297 1,849 1,267 3,566 4,044 2,874 2,502 2,685
Foreign exchange gain (loss) 3,508 (252) (3,378) 13 197 (3,378) 512 (590)
Loss on extinguishment of debt and
amortization of debt issue costs (242) (242) (242) (242) (175) — — (1,634)
Gain (loss) on investments — — (3,118) 1,849 — — — 1,439
(Provision for) recovery of income taxes (33,891) (1,796) (2,388) (11,161) (2,073) 2,230 2,126 (175)
Net (loss) income $ (42,200) $ (11,525) $ (31,834) $ (14,333) $ 18,245 $ 5,935 $ 529 $ 3,277
Net income (loss) per share - basic $ (0.20) $ (0.05) $ (0.16) $ (0.08) $ 0.10 $ 0.03 $ 0.00 $ 0.02
Net income (loss) per share - diluted $ (0.20) $ (0.05) $ (0.16) $ (0.08) $ 0.10 $ 0.03 $ 0.00 $ 0.02
Shares used in per share calculation - basic 212,295 211,298 203,067 187,218 185,703 185,110 183,386 182,192
Shares used in per share calculation - diluted 212,295 211,298 203,067 187,218 188,805 190,739 188,305 188,678
(1) Results include $0.5 million stock-based compensation expense included in Cost of revenues, $5.5 million stock-based compensation expense included in
Research and development expenses, $5.4 million stock-based compensation expense included in Selling, general and administrative expenses, $3.5
million foreign exchange gain on Canadian taxes, and $29.9 million increase in our estimated tax provision for previous years as a result of a written
communication received in 2007 from a tax authority.
(2) Results include $0.4 million stock-based compensation expense included in Cost of revenues, $4.2 million stock-based compensation expense included in
Research and development expenses, $6.0 million stock-based compensation expense and $2.4 million employee-related taxes included in Selling, general
and administrative expenses, and $0.1 million foreign exchange gain on Canadian taxes.
(3) Results include $5.7 million purchase accounting adjustments to inventory and $0.5 million stock-based compensation expense included in Cost of
revenues, $4.0 million stock-based compensation expense included in Research and development expenses, $5.5 million stock-based compensation
expense included in Selling, general and administrative expenses and $3.3 million foreign exchange loss on Canadian taxes.
(4) Results include $2.8 million purchase accounting adjustments to inventory, $0.5 million in additional contractor costs, and $0.4 million stock-based
compensation expense included in Cost of revenues; $2.5 million stock-based compensation expense included in Research and Development expenses;
$3.0 million stock-based compensation expense and $0.2 million relocation expenses included in Selling, General and administrative expenses; $0.1
million foreign exchange gain on Canadian taxes; and $7.0 million withholding and other taxes on repatriation of funds.
(5) Results include $0.2 million foreign exchange gain on Canadian taxes and $5.3 million excess R&D tax credits.
(6) Results include $5.4 million restructuring costs for excess facilities vacated in the third quarter of 2005 and $3.4 million foreign exchange loss on
Canadian taxes.
(7) Results include $7.6 million restructuring costs including $6.7 million for workforce reduction and $0.9 million for asset write-downs; $0.9 million
reversal of provision for doubtful accounts receivable included in Selling, general and administrative expenses and $0.5 million foreign exchange gain on
Canadian taxes.
(8) Results include $0.9 million restructuring costs relating to workforce reduction, $1.0 million reversal of state income tax and $0.7 million foreign
exchange loss on Canadian taxes.
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Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠