3Ware 2004 Annual Report Download - page 28

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Quarterly Comparisons
The following table sets forth consolidated statements of operations for each of our last eight quarters. This
quarterly information is unaudited and has been prepared on the same basis as the annual consolidated financial
statements. In our opinion, this quarterly information reflects all adjustments necessary for a fair presentation of
the periods presented. The operating results for any quarter are not necessarily indicative of results for any future
period. You should read this data together with the Consolidated Financial Statements and related Notes, as well
as “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, contained
elsewhere in this report.
Fiscal Year 2004 Fiscal Year 2003
Q1(5) Q2(6) Q3(7) Q4(8) Q1(1) Q2(2) Q3(3) Q4(4)
(in thousands, except per share data)
Net revenues ................. $ 20,515 $ 25,119 $ 38,189 $ 47,354 $ 30,155 $ 30,219 $ 21,114 $ 20,103
Cost of revenues .............. 9,783 9,485 17,471 20,862 17,639 16,503 14,327 13,431
Gross profit (loss) ............. 10,732 15,634 20,718 26,492 12,516 13,716 6,787 6,672
Operating expenses:
Research and development .... 29,126 26,102 30,052 27,314 35,497 33,441 32,040 30,931
Selling, general and
administrative ............ 10,362 11,037 13,493 10,229 16,326 14,989 14,467 13,806
Stock-based compensation:
Research and
development ........... 9,125 3,579 2,142 598 40,677 11,413 10,467 8,283
Selling, general and
administrative .......... 3,408 1,043 375 369 26,630 24,104 4,286 3,490
Amortization of purchased
intangibles ............... — — 689 408 — — — —
Goodwill and intangible asset
impairments ............. ————204,284 — — 186,389
In-Process R&D ............ — 5,700 16,100 — — — — —
Restructuring costs
(benefits) ................ 23,498 — (200) (973) 2,500 3,000 — 1,750
Total operating expenses . . . 75,519 47,461 62,651 37,945 325,914 86,947 61,260 244,649
Operating loss ................ (64,787) (31,827) (41,933) (11,453) (313,398) (73,231) (54,473) (237,977)
Interest income, net ............ 11,395 8,929 7,080 7,603 10,853 13,606 11,757 11,503
Other income (expense), net ..... — (10) 8,413 (63) (130) (12,811) 3,657 (2,668)
Loss before income taxes and
cummulative effect of
accounting change .......... (53,392) (22,908) (26,440) (3,913) (302,675) (72,436) (39,059) (229,142)
Income tax expense (benefit) .... — — — (1,776) — — — —
Loss before cummulative effect of
accounting change .......... (53,392) (22,908) (26,440) (2,137) (302,675) (72,436) (39,059) (229,142)
Cummulative effect of accounting
change .................... ————(102,229) — — —
Net loss ..................... $(53,392) $ (22,908) $ (26,440) $ (2,137) $(404,904) $ (72,436) $(39,059) $(229,142)
Basic and diluted loss per share
before cummulative effect of
accounting change .......... $ (0.18) $ (0.08) $ (0.09) $ (0.01) $ (1.01) $ (0.24) $ (0.13) $ (0.76)
Cummulative effect of accounting
change .................... ————(0.34) — — —
Diluted loss per share .......... $ (0.18) $ (0.08) $ (0.09) $ (0.01) $ (1.35) $ (0.24) $ (0.13) $ (0.76)
Shares used in calculating diluted
loss per share ............... 303,801 305,195 306,823 310,083 299,811 300,701 301,622 302,875
(1) The consolidated operating results for the first quarter of fiscal 2003 include a $102.2 million charge for the cumulative
effect of the change in accounting upon adoption of FAS 142, a $204.3 million charge for impairment of certain other
purchased intangible assets, $44 million for acceleration of deferred compensation from the voluntary cancellation of
certain employees’ stock options in connection with the stock option exchange program and a $2.5 million restructuring
charge.
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