3Ware 2005 Annual Report Download - page 79

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Net loss per share:
Shares used in basic net loss per share are computed using the weighted average number of common shares
outstanding during each period. Shares used in diluted net 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, except per share data):
Fiscal Years Ended March 31,
2005 2004 2003
Net loss (numerator):
Loss before cumulative effect of accounting change ............... $(127,373) $(104,877) $(643,312)
Cumulative effect of accounting change ........................ — — (102,229)
Net loss .................................................. $(127,373) $(104,877) $(745,541)
Shares used in basic and diluted net loss per share computation
(denominator):
Weighted average common shares outstanding ................... 309,456 306,558 301,913
Less: Unvested common shares outstanding ..................... — (82) (661)
Shares used in basic and diluted net loss per share computation ...... 309,456 306,476 301,252
Basic and diluted net loss per share:
Basic and diluted net loss per share before cumulative effect of
accounting change ....................................... $ (0.41) $ (0.34) $ (2.14)
Cumulative effect of accounting change ........................ — — (0.33)
Basic and diluted net loss per share ............................ $ (0.41) $ (0.34) $ (2.47)
Because the Company incurred losses in the years ended March 31, 2005, 2004 and 2003, the effect of
dilutive securities totaling 3,471, 4,629, and 2,778 equivalent shares (in thousands), respectively, have been
excluded from the loss per share computation as their impact would be antidilutive.
4. Acquisitions
The Company completed four acquisitions during the years ended March 31, 2005 and 2004 using the
purchase method of accounting. The accompanying consolidated financial statements include the results of
operations of each business acquired from the date of acquisition. Details of the acquired business are as follows:
Fiscal 2005
3ware, Inc.—On April 1, 2004, the Company completed the acquisition of 3ware, Inc. for approximately
$145.0 million in cash and assumed options to purchase approximately 4.3 million shares of AMCC’s common
stock. 3ware is a provider of high-performance, high-capacity Serial ATA (SATA) storage solutions for
emerging storage applications such as disk-to-disk backup, near-line storage, network-attached storage (NAS),
video, and high-performance computing.
Embedded Products Business—On May 5, 2004, the Company completed the acquisition of the assets and
intellectual property associated with IBM’s 400 series of embedded PowerPC®standard products for
approximately $227.9 million in cash. On December 6, 2004, the Company exercised an option to purchase
additional related assets located in France for $4.1 million.
F-17