3Ware 2003 Annual Report Download - page 69

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Certain Financial Statement Information
Accounts receivable (in thousands):
March 31,
2002 2003
Accounts receivable .......................................................... $19,548 $ 6,964
Less: allowance for bad debts .................................................. (5,357) (1,330)
$14,191 $ 5,634
The reduction in the allowance for bad debts from March 31, 2002 to March 31, 2003 was primarily related
to the $2.6 million write-off of certain accounts in the third quarter of fiscal 2003, which had been specifically
reserved for in fiscal 2001.
Inventories (in thousands):
March 31,
2002 2003
Finished goods ............................................................... $ 3,356 $4,455
Work in process .............................................................. 12,485 2,252
Raw materials ............................................................... 767 471
$16,608 $7,178
Property and equipment (in thousands):
March 31,
2002 2003
Machinery and equipment ................................................... $ 81,084 $ 48,772
Leasehold improvements .................................................... 16,873 8,981
Computers, office furniture and equipment ..................................... 82,382 72,533
Land .................................................................... 22,160 17,280
202,499 147,566
Less accumulated depreciation and amortization ................................. (96,087) (85,531)
$106,412 $ 62,035
The cost and accumulated amortization of machinery and equipment under capital leases at March 31, 2003
were approximately $831,000 and $664,000, respectively ($2.5 million and $1.8 million, at March 31, 2002,
respectively). Amortization of assets held under capital leases is included with depreciation expense. In the year
ended March 31, 2003, the Company accelerated $2.0 million of depreciation expense as a result of its decision
to close the internal wafer manufacturing facility. Such amount is included in cost of revenues.
F-14