3Ware 2008 Annual Report Download - page 6

BOARD OF DIRECTORS
Cesar Cesaratto
Chairman of the Board
Independent Director
Compensation Committee
Governance and Nominating
Committee – Chairperson
Kambiz Hooshmand
Technical Advisory Board Committee –
Chairperson
President and Chief Executive Officer
Applied Micro Circuits Corporation
Donald Colvin
Independent Director
Audit Committee
Chief Financial Officer – ON Semiconductor
Fred Shlapak
Independent Director
Compensation Committee
Technical Advisory Board Committee
Former President and Chief Executive Officer
– Motorola Corporation SPS
Niel Ransom
Independent Director
Compensation Committee
Technical Advisory Board Committee
Former Chief Technology Officer – Alcatel
Arthur Stabenow
Independent Director
Audit Committee
Compensation Committee –
Chairperson
Governance and Nominating Committee
Julie Sullivan
Independent Director
Audit Committee – Chairperson
Governance and Nominating
Committee
Vice President and Provost,
University San Diego
EXECUTIVE OFFICERS
Kambiz Hooshmand
President and Chief Executive Officer
Robert Gargus
Senior Vice President and Chief Financial
Officer
Shiva Natarajan
Vice President and Corporate Controller
Mike Major
Vice President, Human Resources
Russell Johnson
Senior Vice President and General Manager,
Storage
Daryn Lau
Senior Vice President, Corporate
Marketing and Strategy
Cynthia Moreland
Vice President, General Counsel
and Secretary
Roger Wendelken
Vice President of World Wide Sales
FINANCIAL HIGHLIGHTS
ANNUAL MEETING
The AMCC 2008 Annual meeting of
Stockholders will be held at 10:00 a.m.,
on August 19, 2008 at the Company’s
headquarters located at 215 Moffett Park
Drive, Sunnyvale, California 94089.
INDEPENDENT AUDITORS
Ernst & Young LLP
303 Almaden Boulevard
San Jose, CA 95110
OUTSIDE COUNSEL
Cooley Godward Kronish LLP
4401 Eastgate Mall
San Diego, CA 92121-1909
TRANSFER AGENT AND REGISTRAR
Computershare Investor Services, LLC
Shareholder Communications Team
2 North LaSalle Street
Chicago, IL 60602
Phone: [phone]
www.computershare.com
Email: web[email protected]
CORPORATE HEADQUARTERS
Applied Micro Circuits Corporation (AMCC)
215 Moffett Park Drive
Sunnyvale, California 94089
Phone: [phone]
Fax: [phone]
INVESTOR INFORMATION
Exchange: Nasdaq Global Select
Stock Market
Symbol: AMCC
COMPANY INQUIRIES
AMCC
Shiva Natarajan
Vice President and Corporate Controller
215 Moffett Park Drive
Sunnyvale, California 94089
Phone: [phone]
Fax: [phone]
AMCC and 3ware are registered trademarks and MISSION
is a trademark of Applied Micro Circuits Corporation.
The PowerPC name and logo are registered trademarks
of IBM Corporation and used under license therefrom.
All other trademarks are the property of their respective
holders. Copyright © 2008 Applied Micro Circuits
Corporation. All rights reserved.
Forward Looking Statements
This annual report contains forward-looking statements, including statements concerning the anticipated future direction of the network, storage and other markets that AMCC serves, the resulting opportunities for AMCC, AMCC’s strategy, plans, goals and expectations,
including its targets for revenues and operating margin, and anticipated benefits from AMCC’s initiatives. These forward-looking statements are only predictions based on current information and expectations and are subject to risks and uncertainties, such as those
associated with customer demand for AMCC’s products, which in turn is driven by the demand for AMCC’s customers’ products; the businesses of AMCC’s major customers; the concentration of AMCC’s business on and its revenue with its major customers; reductions,
rescheduling and cancellation of orders by AMCC’s customers; successful and timely development of new products by AMCC and its customers; AMCC’s manufacturing capacity and execution; and general economic conditions in the United States and around the world.
More information about these and other factors that could affect AMCC’s business and financial results is included in the “Risk Factors” set forth in the annual report on Form 10-K and in AMCC’s other filings with the Securities and Exchange Commission from time to time.
As a result of such factors, AMCC’s actual business performance and financial results could differ materially from what is set forth in the forward-looking statements. AMCC undertakes no duty to update the forward-looking statements contained in this annual report.
FY06 FY07 FY08
Annual Revenue ($ in Millions) $ 261.8 $ 292.9 $ 246.1
Reconciliation of GAAP Operating Loss to Non-GAAP Operating Income (Loss)
$ in Millions FY06 FY07 FY08
GAAP Operating Loss $ (164.9) $ (37.2) $ (122.0)
Adjustments to reconcile GAAP operating loss to non-GAAP operating income (loss):
Stock-based compensation charges 6.6 10.3 11.3
Amortization / impairments of purchased intangibles 22.2 24.8 23.7
Impairment of goodwill 131.2 - 71.5
In-process R&D charge - 13.3 -
Restructuring charges 12.6 1.3 3.0
Gain on renegotiated design tool agreement - - (0.8)
Litigation settlement, net - - 1.1
Expenses related to stock option investigation - 5.3 1.1
Total adjustments to reconcile GAAP operating loss to non-GAAP operating income (loss) 172.6 55.0 110.9
Non-GAAP Operating Income (Loss) $ 7.7 $ 17.8 $ (11.1)
Non-GAAP Operating Margin as a Percentage of Revenue 2.9% 6.1% -4.5%
Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss)
$ in Millions FY06 FY07 FY08
GAAP Net Loss $ (148.4) $ (24.2) $ (115.1)
Adjustments to reconcile GAAP net loss to non-GAAP net income (loss) (see detail above) 172.6 55.0 110.9
Gains on sales of certain assets (0.7) - (4.6)
Impairment of strategic investment - - 3.0
Impairment of long-term marketable securities - - 1.7
Income tax adjustments to reconcile GAAP net loss to non-GAAP net income (loss) (5.7) (0.5) 3.7
Total adjustments to reconcile GAAP net loss to non-GAAP net income (loss) 166.2 54.5 114.7
Non-GAAP Net Income (Loss) $ 17.8 $ 30.3 $ (0.4)
Non-GAAP Net Income (Loss) as a Percentage of Revenue 6.8% 10.3% -0.2%
Selected Balance Sheet Items and Other Information:
$ and Shares in Millions FY06 FY07 FY08
Cash, cash equivalents and short-term investments $ 335.7 $ 284.5 $ 142.9
Days sales outstanding at year end 35 42 36
Inventory turns 5.7 5.0 3.7
Purchase of property, equipment and other assets $7.9 $6.7 $7.0
Headcount at year end 600 619 583
Annual revenue per employee (based on year end headcount) $ 0.436 $ 0.473 $ 0.422
Shares outstanding at year end 73.9 70.7 64.8