3Ware 2003 Annual Report Download - page 71

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Interest income, net (in thousands):
Fiscal Years Ended March 31,
2001 2002 2003
Interest income ..................................................... $55,739 $46,890 $38,341
Net realized gains (losses) on short-term investments ....................... — 801 9,526
Interest expense .................................................... (403) (214) (148)
$55,336 $47,477 $47,719
Earnings (loss) per share:
Shares used in basic loss per share are computed using the weighted average number of common shares
outstanding during each period. Shares used in diluted loss 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 loss per share consists of the following (in thousands):
Fiscal Years Ended March 31,
2001 2002 2003
Net loss (numerator):
Net loss before cumulative effect of accounting change .......... $(436,215) $(3,605,690) $(643,312)
Cumulative effect of accounting change ....................... — — (102,229)
Net loss ................................................ $(436,215) $(3,605,690) $(745,541)
Shares used in basic and diluted net loss per share computation
(denominator):
Weighted average common shares outstanding ................. 270,114 300,086 301,913
Less: Unvested common shares outstanding .................... (2,751) (1,584) (661)
Shares used in basic and diluted net loss per share computation .... 267,363 298,502 301,252
Basic and diluted net loss per share:
Basic and diluted net loss per share before cumulative effect of
accounting change ...................................... $ (1.63) $ (12.08) $ (2.14)
Cumulative effect of accounting change ....................... — — (0.33)
Basic and diluted net loss per share .......................... $ (1.63) $ (12.08) $ (2.47)
Because the Company incurred losses in the years ended March 31, 2001, 2002 and 2003, the effect of
dilutive securities totaling 22,260, 9,541 and 2,778 equivalent shares, respectively, have been excluded from the
loss per share computation as their impact would be antidilutive.
5. Acquisitions
The Company completed a number of acquisitions in fiscal 2001 using the purchase method of accounting.
The accompanying consolidated financial statements include the results of operations of each company acquired
from the date of acquisition. The acquired companies are as follows:
MMC Networks, Inc.—On October 25, 2000, the Company acquired MMC, a fabless semiconductor
company that provided network processors, traffic management and switch fabric ICs. Under the terms of the
merger agreement, in exchange for all of the outstanding stock of MMC, the Company issued 41,392,404 shares
of its common stock and assumed options to purchase 7,981,595 shares of its common stock.
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