3Ware 2000 Annual Report Download

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ANNUAL REPORT FISCAL 2000
LASTING INNOVATION FOR THE DYNAMIC NETWORKING LANDSCAPE

Table of contents

  • Page 1
    L A S T I N G I N N O V A T I O N F O R T H E D Y N A M I C N E T W O R K I N G L A N D S C A P E A N N U A L R E P O R T F I S C A L 2 0 0 0

  • Page 2
    ... and development, availability of demand for integrated circuits, general overall economic conditions and the risk factors that are detailed in the Company's Annual Report on Form 10-K for the year ended March 31, 2000 and the Company's other filings with the Securities and Exchange Commission.

  • Page 3
    F I N A N C I A L H I G H L I G H T S (in millions, except per share data) FY 97 FOR THE FISCAL YEAR ENDED MARCH 31 FY 98 FY 99* FY 00 Net revenues Operating income Net income Earnings per share-diluted $ $ $ $ 57.5 7.0 6.3 0.09 $ $ $ $ 76.6 14.8 15.2 0.19 $ 105.0 $ $ $ 23.9 17.1 0.16...

  • Page 4
    ... record net revenues of $172.4 million represent an increase of 64% over the $105.0 million reported in fiscal 1999. Net income for fiscal 2000 also increased to $48.6 million, or $0.41 per share, compared to $17.1 million, or $0.16 per share, in fiscal 1999. BUILDING FOR THE F U T U R E. AMCC...

  • Page 5
    ...+ gigabit-per-second capabilities. Plus, we have expanded our capacity in all our facilities, breaking ground on a new engineering building in January 2000 and initiating development of additional sites in San Diego. Of the many significant accomplishments we have witnessed over the past year, I am...

  • Page 6
    M I L E S T O N E S 2 0 0 0 M A R C H 2 0 0 0 M A R C H 2 0 0 0 F E B R U A R Y 2 0 0 0 J A N U A R Y 2 0 0 0 O C T O B E R 1 9 9 9 Introduction of RHINE (S4804), the first highly integrated framing and data termination device to support deeply channelized OC-48 SONET/SDH ...

  • Page 7
    ... 100%. AMCC also continued the expansion of its engineering department, including breaking ground on a new engineering facility in January 2000 and developing plans for additional facilities in San Diego. In addition, AMCC installed a high-speed networking infrastructure to improve communications...

  • Page 8
    Over the past year, AMCC has witnessed a dramatic change in customer outsourcing requirements, including an increased demand for total solutions capable of helping customers improve responsiveness and time to market. The Company has responded by developing high-performance solutions that combine ...

  • Page 9
    REVENUE O C - 1 9 2 O C - 4 8 O C - 1 2 DEMAND TIME NOW AMCC's design centers enable faster, more efficient results for its customers. Simultaneous growth in multiple SONET technologies is expected to continue to fuel AMCC's tremendous success. AMCC's comprehensive testing capabilities help ...

  • Page 10
    "AMCC's we circuits high-performance first to in the new core components IP and test boards and that ensured OC-192c wide delivered market wirespeed OC-48c infrastructures world service providers networks are deploying today." Pradeep Sindhu Vice Chairman, CTO and Founder, Juniper ...

  • Page 11
    AMCC works closely with customers throughout the design process to optimize results. AMCC evaluation systems provide customers with valuable time-to-market advantages. AMCC S3029 Quad CDR AMCC S3024 CRU AMCC S4802 MISSOURI AMCC S3056 CDR AMCC S3063 MUX AMCC S3064 DEMUX AMCC S3056 CDR

  • Page 12
    G ADM L O S S A R Y ( ADD / DROP MULTIPLEXER ) A SONET/SDH term for a device that can either insert or drop DS-1, DS-2 and DS-3 channels or SONET signals into/from a SONET bit stream. MIXED - SIGNAL IC Monolithic ICs that contain both digital and analog circuitry. ( ASYNCHRONOUS TRANSFER MODE ) ...

  • Page 13
    ... Results of Operations Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Ernst & Young LLP, Independent Auditors 14 15 21 22 23 24 25 36

  • Page 14
    ...% 22,472 21% 18,325 17% 2,350 2% 43,147 41% 23,916 23% 3,450 27,366 26% 10,233 37% $ 17,133 13% 16% 0.16 $ 2000 $172,352 64% 50,218 122,134 71% 32,815 19% 28,199 16% - - 61,014 35% 61,120 35% 12,872 73,992 43...

  • Page 15
    ...5,854 21% $ 4,055 7% $ 5,185 9% 256 $ $ 1998 $ 77,417 6,711 7% $ 11,624 15% 5,174 7% 320 $ 1999 $103,617 $ 10,495 9% $ 16,490 16% 7,045 7% 361 $ $ $ 2000 $ 977,621 7,417 1% 22,753 13% 8,039 5% 477 Working capital Total long-term debt and capital lease obligations Total long-term debt and capital...

  • Page 16
    ...Q1 $31,643 10,283 21,360 68% Q2 $37,898 11,326 26,572 70% 2000 Q3 $45,762 13,209 32,553 71% Q4 $57,049 15,400 41,649 73%... indicated, the high, low and quarter-end market prices of the common stock as reported by Nasdaq (rounded to the nearest cent). The Company has never paid dividends on its ...

  • Page 17
    ...limited to, those described in the "Risk Factors" in the Company's Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on ...17,133 $ 0.16 100.0% 36.1 63.9 21.4 17.5 2.2 41.1 22.8 3.3 26.1 9.8 16.3% 2000 $172,352 50,218 122,134 32,815 28,199 - 61,014 61,120 12,872 73,992 25...

  • Page 18
    ...stock splits. NET REVENUES. Net revenues for the year ended March 31, 2000 were approximately $172.4 million, representing an increase of 64% over net ...to $138.1 million or 80% of net revenues for the year ended March 31, 2000 from $57.3 million or 55% of net revenues for the year ended March 31,...

  • Page 19
    ... from operations and the net proceeds of approximately $815 million from our public offering completed in January 2000. I N C O M E TA X E S . Our annual effective tax rate for the year ended March 31, 2000 was 34.3%, compared to an effective tax rate of 37.4% for the year ended March 31, 1999...

  • Page 20
    ...from our public offerings completed during the second half of the year ended March 31, 1998. O P E R AT I N G M A R G I N . NET I N C O M E TA X E S . Our annual effective tax rate for the year ended March 31, 1999, which approximated statutory rates, was 37.4%, compared to an effective tax rate...

  • Page 21
    ... of cash provided by our operating activities, offset by the purchase of property, equipment and other assets. For the years ended March 31, 2000, 1999 and 1998, net cash provided by operating activities was $65.3 million, $22.0 million and $16.9 million, respectively. Net cash provided by operating...

  • Page 22
    M A N A G E M E N T ' S D I S C U S S I O N A N D A N A LY S I S O F F I N A N C I A L C O N D I T I O N A N D R E S U LT S O F O P E R A T I O N S RISK FACTORS Our results of operations have varied significantly in the past and may continue to do so in the future. These variations have been, and ...

  • Page 23
    ... investments-available-for-sale Accounts receivable, net of allowance for doubtful accounts of $177 and $314 at March 31, 1999 and 2000, respectively Inventories Deferred income taxes Current portion of notes receivable from officers and employees Other current assets Total current assets Property...

  • Page 24
    ...,937 67,063 22,472 18,325 2,350 43,147 23,916 3,450 27,366 10,233 $ 17,133 $ 0.17 98,056 0.16 109,720 $ 2000 $172,352 50,218 122,134 32,815 28,199 - 61,014 61,120 12,872 73,992 25,367 $ 48,625 $ 0.45 107,820...

  • Page 25
    ... Tax benefit of disqualifying dispositions Comprehensive Income: Net income Unrealized loss on short-term investments, net of tax benefit Total comprehensive income Balance, March 31, 2000 See accompanying notes. $(1,443) $(166) $(455) $1,013,805 A M C C 23 2 0 0 0

  • Page 26
    ... (691) (434) 22,011 187,787 (199,394) 262 (16,490) (27,835) 9,062 - - 46 (2,110) (792) 2,342 4,346 12,894 7,070 6,460 13,530 $ 2000 48,625 8,039 701 611 15,159 - - (6,184) (1,813) (7,417) 3,687 2,170 425 1,337 65,340 1,847,446 (2,559,018) 786 (22,753) (733,539...

  • Page 27
    ... fair value with unrealized gains and losses excluded from earnings and reported, net of tax, in comprehensive income (loss). The basis ...for-sale securities by contractual maturity are as follows (in thousands): March 31, 2000 Due in one year or less Due after one year through two years Greater ...

  • Page 28
    ... estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in... for long-lived assets that are expected to be disposed of. Through March 31, 2000, the Company has not experienced any such impairments. ADVERTISING COST Advertising costs are expensed ...

  • Page 29
    ... Accounting Standards Board (FASB) issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," which establishes accounting and reporting standards for derivative instruments and hedging activities. It requires that an entity recognize all derivatives as either assets or...

  • Page 30
    ...diluted earnings per share computations 2. ACQUISITIONS 1999 98,056 - 11,664 109,720 2000 107,820 - 11,332 119,152 42,376 29,736 9,064 81,176 In... to the retained earnings and cash flows of AMCC and excluded from reported fiscal 1999 results of operations. In April 1998, the Company acquired ...

  • Page 31
    ... March 31, 1999). Amortization of assets held under capital leases is included with depreciation expense. During the years ended March 31, 1998, 1999 and 2000, the Company earned interest income of $1,252,000, $3,992,000 and $13,506,000, respectively, and incurred interest expense of $381,000, $542...

  • Page 32
    ... until such ownership rights have vested, or exercisable upon vesting. Vesting generally occurs over four to five years. At March 31, 1999 and 2000, 3.5 million and 1.1 million shares of common stock were subject to repurchase, respectively. Options are granted at prices at least equal to fair value...

  • Page 33
    ... offering and the Black Scholes method for grants after the initial public offering. The fair value of options granted in 1998, 1999 and 2000 reported below has been estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions. Fiscal Year...

  • Page 34
    ... common stock on the first or last day of the offering period, whichever is lower. COMMON SHARES RESERVED FOR FUTURE ISSUANCE At March 31, 2000, the Company has the following shares of common stock reserved for issuance upon the exercise of equity instruments (in thousands): Stock Options: Issued...

  • Page 35
    ...406 1999 $ 9,860 1,064 10,924 (362) (329) (691) $10,233 2000 $21,966 2,976 24,942 65 360 425 $25,367 Current: Federal State Total...4 37% $ $25,897 - (873) (312) 2,294 (2,122) (1,097) 213 1,367 $25,367 2000 % 35% - (1) - 3 (3) (2) - 2 34% Tax at federal statutory rate Increase (decrease) in ...

  • Page 36
    .... The Company also leases certain software under noncancellable operating leases expiring through 2002. Annual future minimum lease payments, including machinery and equipment under capital leases as of March 31, 2000 are as follows: Operating Fiscal Year Ending March 31, Capital Leases $ 879 736...

  • Page 37
    ... Plan provides for voluntary employee contributions from 1% to 20% of annual compensation, subject to a maximum limit allowed by Internal Revenue Service...,773 4,193 $76,618 1999 $ 61,760 18,011 18,136 7,093 $105,000 2000 $ 88,349 43,770 28,980 11,253 $172,352 Net revenues: United States Canada ...

  • Page 38
    ...each of the three years in the period ended March 31, 2000. These financial statements are the responsibility of the Company's management. ... financial position of Applied Micro Circuits Corporation at March 31, 1999 and 2000, and the consolidated results of its operations and its cash flows for ...

  • Page 39
    ...its stockholders and other interested investors. For additional copies of this report, the Form 10-K or other information, please contact: AMCC ...Tullie Vice President, Sales The AMCC annual meeting of stockholders will be held at 10:00 a.m. on Tuesday, August 29, 2000, at AMCC's facility located at ...

  • Page 40
    A P P L I E D M I C R O C I R C U I T S C O R P O R AT I O N / 6 2 9 0 S E Q U E N C E D R I V E / S A N D I E G O , C A L I F O R N I A 9 2 1 2 1 - 4 3 5 8 / T E L 8 5 8 - 4 5 0 - 9 3 3 3 / W W W. A M C C . C O M