3Ware 2000 Annual Report Download - page 30

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28 2000
AMCC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
EARNINGS PER SHARE
Shares used in basic earnings per share are computed using the weighted-average number of common shares outstanding
during each period. Shares used in diluted earnings per share include the dilutive effect of common shares potentially issuable
upon the exercise of stock options. The reconciliation of shares used to calculate basic and diluted earnings per share
consists of the following (in thousands):
Fiscal Year Ended March 31,
1998 1999 2000
Shares used in basic earnings per share computations–weighted-average common shares outstanding 42,376 98,056 107,820
Effect of assumed conversion of preferred stock from date of issuance 29,736 — —
Net effect of dilutive common share equivalents based on treasury stock method 9,064 11,664 11,332
Shares used in diluted earnings per share computations 81,176 109,720 119,152
2. ACQUISITIONS
In March 1999, the Company acquired all of the outstanding common stock and common stock equivalents of Cimaron
Communications Corporation (“Cimaron”) in exchange for approximately 12 million shares of the Company’s common
stock. Cimaron also designs and develops high-bandwidth silicon solutions for the world’s communications equipment
manufacturers. The acquisition has been accounted for using the pooling-of-interests method of accounting. Prior to the
combination, Cimaron had a fiscal year end of December 31. In recording the business combination, Cimaron’s results
of operations for the fiscal year ended December 31, 1998 were combined with AMCC’s for the fiscal year ended
March 31, 1999. Cimaron’s net sales and net loss for the three-month period ended March 31, 1999 were $110,000
and $(1,341,000), respectively. Cimaron’s results of operations and cash flows for the three-month period ended
March 31, 1999 have been added directly to the retained earnings and cash flows of AMCC and excluded from reported
fiscal 1999 results of operations.
In April 1998, the Company acquired Ten Mountains Design, which designs and develops high-bandwidth analog devices
for communications equipment suppliers and optical module manufacturers. The purchase price was approximately
$330,000 and resulted in recording intangible assets of approximately $280,000, which will be amortized over three
years. The financial statements include the results of operation for Ten Mountains Design from the date of acquisition.
3. CERTAIN FINANCIAL STATEMENT INFORMATION
March 31,
1999 2000
Inventories (in thousands):
Finished goods $ 975 $ 2,666
Work in process 7,688 6,966
Raw materials 1,150 1,293
$ 9,813 $10,925
March 31,
1999 2000
Property and equipment (in thousands):
Machinery and equipment $33,280 $46,375
Leasehold improvements 7,641 8,352
Computers, office furniture and equipment 16,654 20,743
Land 1,133 4,808
58,708 80,278
Less accumulated depreciation and amortization (35,580) (42,436)
$23,128 $37,842