3Ware 2005 Annual Report Download - page 28

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RESULTS OF OPERATIONS
Comparison of the Year Ended March 31, 2005 to the Year Ended March 31, 2004
Net Revenues. Net revenues for the year ended March 31, 2005 were approximately $253.8 million,
representing an increase of 93.4% from the net revenues of approximately $131.2 million for the year ended
March 31, 2004. The increase in total net revenues was primarily attributable to the revenues generated from our
fiscal 2004 and 2005 acquisitions, as well as increases in revenue from our existing communications product
portfolio, offset by decreases in other revenue. See the following tables (dollars in thousands):
Fiscal Years Ended March 31,
Increase
(Decrease) Change
2005 2004
Amount
%ofNet
Revenue Amount
%ofNet
Revenue
Communications ....................... $128,900 50.8% $104,197 79.4% $ 24,703 23.7%
Storage ............................... 51,423 20.3% 13,038 10.0% 38,385 294.4%
Embedded Products ..................... 64,474 25.4% — 0.0% 64,474 100.0%
Other ................................. 8,959 3.5% 13,942 10.6% (4,983) (35.7)%
$253,756 100.0% $131,177 100.0% $122,579 93.4%
Communication revenue consists of our historical communications business and the PRS Business
acquisition. Storage revenue is derived from of our JNI acquisition and our 3ware acquisition. The Embedded
Products revenue consists of our Embedded Products Business acquisition and other revenue consists of our
legacy non-communications products, such as computer, ATE and military products.
Based on direct shipments, net revenues to customers that exceeded 10% of total net revenues in any of the
three years ended March 31, 2005 were as follows:
2005 2004 2003
Harris Corporation .................................................. * * 18%
Sanmina—SCI ..................................................... * 11% *
Insight Electronics .................................................. 14% 14% *
Looking through product shipments to distributors and subcontractors to the end customers, net revenues to
end customers that exceeded 10% of total net revenues in any of the three years ended March 31, 2005 were as
follows:
2005 2004 2003
Harris Corporation .................................................. * * 18%
Nortel Networks Corporation .......................................... 11% 17% 14%
* Less than 10% of total net revenues for period indicated.
The decline in revenues attributable to Harris Corporation was due to the fulfillment of certain last time buy
orders of non-communications products in fiscal 2003.
Revenues based on direct shipments outside the United States of America accounted for 52% of net
revenues for the year ended March 31, 2005 compared to 46% for the year ended March 31, 2004.
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