3Ware 2002 Annual Report Download - page 35

Quarterly Comparisons
The following table sets forth consolidated statements of operations for each of our last eight quarters. This
quarterly financial information is unaudited and has been prepared on the same basis as the annual consolidated
financial statements. In our opinion, this quarterly financial information reflects all adjustments, consisting only
of normal recurring adjustments, necessary for a 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. This
consolidated financial information includes the results of operations of acquisitions accounted for using the
purchase method of accounting commencing as of their respective acquisition dates. See Note 3 of the Notes to
Consolidated Financial Statements. This selected consolidated financial data should be read together with the
Consolidated Financial Statements and related Notes contained in this Report, as well as the section of this
Report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Quarterly Financial Information for Fiscal 2001 and Fiscal 2002
(in thousands, except per share data)
Fiscal 2001 Fiscal 2002
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net revenues .................... $ 74,188 $ 97,007 $ 143,269 $ 121,079 $ 41,206 $ 41,302 $ 40,220 $ 30,112
Cost of revenues(1) .............. 19,314 24,532 61,196 58,124 49,436 31,990 31,307 29,322
Gross profit (loss) ................ 54,874 72,475 82,073 62,955 (8,230) 9,312 8,913 790
Operating expenses:
Research and development(1) . . 14,742 19,315 31,285 39,883 39,052 39,770 38,275 37,528
Selling, general and
administrative(1) .......... 10,572 14,661 20,498 23,501 20,438 19,355 18,277 17,586
Stock-based compensation(1) . . 134 610 35,954 43,032 36,792 36,793 36,793 36,673
Amortization of goodwill and
purchased intangibles ....... 2,284 8,563 127,574 170,414 169,548 23,339 23,339 23,337
Goodwill impairment charge . . . — — — — 3,101,817 — — —
Restructuring costs ........... — — — — — 11,177 200 200
Acquired in-process research
and development .......... 21,800 3,600 176,700 — — — — —
Total operating expenses . . 49,532 46,749 392,011 276,830 3,367,647 130,434 116,884 115,324
Operating income (loss) ........... 5,342 25,726 (309,938) (213,875) (3,375,877) (121,122) (107,971) (114,534)
Other income (expense), net ....... (1) (1) 91 24 (8,742) (4,995) (433) (422)
Interest income, net .............. 12,278 13,466 14,680 14,912 13,625 13,162 10,872 9,818
Income (loss) before income taxes . . . 17,619 39,191 (295,167) (198,939) (3,370,994) (112,955) (97,532) (105,138)
Income tax expense (benefit) ....... 14,224 15,576 (25,680) (5,201) (32,814) (17,012) (16,231) (14,872)
Net income (loss) ................ $ 3,395 $ 23,615 $(269,487) $(193,738) $(3,338,180) $ (95,943) $(81,301) $(90,266)
Diluted earnings (loss) per share .... $ 0.01 $ 0.09 $ (0.95) $ (0.65) $ (11.18) $ (0.32) $ (0.27) $ (0.30)
Shares used in calculating diluted
earnings (loss) per share ......... 265,162 271,798 282,313 296,387 298,549 299,235 297,360 298,865
(1) Stock-based compensation expense related to acquired companies is excluded from the following (in thousands):
Cost of revenues . ................ $—$—$1,203 $ 1,617 $ 1,226 $ 1,227 $ 1,227 $ 5,189
Research and development ......... 95 491 18,122 22,595 18,368 18,368 18,370 16,651
Selling, general and administrative . . 39 119 16,629 18,820 17,198 17,198 17,196 14,833
$ 134 $ 610 $ 35,954 $ 43,032 $ 36,792 $ 36,793 $ 36,793 $ 36,673
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