3Ware 2000 Annual Report Download - page 37

35 2000
AMCC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. EMPLOYEE RETIREMENT PLAN
Effective January 1, 1986, the Company established a 401(k) defined contribution retirement plan (the “Retirement Plan”)
covering all full-time employees with greater than three months of service. The Retirement Plan provides for voluntary
employee contributions from 1% to 20% of annual compensation, subject to a maximum limit allowed by Internal Revenue
Service guidelines. The Company may contribute such amounts as determined by the Board of Directors. Employer con-
tributions vest to participants at a rate of 20% per year of service, provided that after five years of service all past and
subsequent employer contributions are 100% vested. The contributions charged to operations totaled $412,000,
$573,000 and $677,000 for the years ended March 31, 1998, 1999 and 2000, respectively.
9. SIGNIFICANT CUSTOMER AND GEOGRAPHIC INFORMATION
During the years ended March 31, 1998, 1999 and 2000, 21%, 20% and 38%, respectively, of net revenues were from
Nortel and their subcontract manufacturers. In 1998, 1999 and 2000, Insight Electronics, the Company’s domestic dis-
tributor, accounted for 11%, 13% and 17% of net revenues, respectively. Additionally, in 1999, Raytheon Systems Co.
accounted for 16% of net revenues. No other customer accounted for more than 10% of revenues in any period.
Net revenues by geographic region were as follows:
Fiscal Year Ended March 31,
(in thousands) 1998 1999 2000
Net revenues:
United States $44,448 $ 61,760 $ 88,349
Canada 14,204 18,011 43,770
Europe and Israel 13,773 18,136 28,980
Asia 4,193 7,093 11,253
$76,618 $105,000 $172,352
10. CONTINGENCIES
The Company is party to various claims and legal actions arising in the normal course of business, including notification
of possible infringement on the intellectual property rights of third parties. In addition, since 1993 the Company has been
named as a potentially responsible party (“PRP”) along with a large number of other companies that used Omega Chemical
Corporation (“Omega”) in Whittier, California to handle and dispose of certain hazardous waste material. The Company is
a member of a large group of PRPs that has agreed to fund certain remediation efforts at the Omega site for which the
Company has accrued approximately $50,000. Although the ultimate outcome of these matters is not presently deter-
minable, management believes that the resolution of all such pending matters, net of amounts accrued, will not have a
material adverse affect on the Company’s financial position or liquidity; however, there can be no assurance that the ulti-
mate resolution of these matters will not have a material impact on the Company’s results of operations in any period.
11. SUBSEQUENT EVENT
On April 19, 2000, the Company signed a definitive agreement to acquire YuniNetworks, Inc., a developer of scalable
switch fabric silicon solutions for communication equipment. Under the terms of the agreement, AMCC will issue up to
2,250,000 shares of its common stock and options in exchange for all outstanding shares of YuniNetworks’ preferred
and common stock, including shares issuable upon exercise of employee stock options and other rights. The transaction
will be accounted for as a purchase and is expected to close in June 2000.