8x8 2001 Annual Report Download - page 19

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RESULTS OF OPERATIONS
the percentage of our total revenues represented by each item. Cost of product revenues is presented as a percentage of product revenues and
cost of license and other revenues is presented as a percentage of license and other revenues. You should read this information in conjunction
with our Consolidated Financial Statements and related notes included elsewhere in this Report:
Revenues
The following table illustrates net revenues by groupings of similar products (in thousands):
15
YEAR ENDED MARCH 31,
--------------------------------------------------
2001 2000 1999
-------------- -------------- --------------
($ IN MILLIONS)
Product revenues......................... $ 12.8 70% $ 20.8 82% $ 26.2 83%
License and other revenues............... 5.4 30% 4.6 18% 5.5 17%
------ ---- ------ ---- ------ ----
Total revenues................. 18.2 100% 25.4 100% 31.7 100%
------ ---- ------ ---- ------ ----
Cost of product revenues................. 5.2 41% 8.5 41% 24.2 92%
Cost of license and other revenues....... 1.8 33% 0.1 3% 0.1 2%
------ ---- ------ ---- ------ ----
Total cost of revenues......... 7.0 38% 8.6 34% 24.3 77%
------ ---- ------ ---- ------ ----
Gross profit................... 11.2 62% 16.8 66% 7.4 23%
------ ---- ------ ---- ------ ----
Operating expenses:
Research and development............... 18.7 104% 11.9 47% 9.9 31%
Selling, general and administrative.... 18.1 99% 21.3 84% 17.7 56%
In-process research and development.... 4.6 25% 10.1 40% -- --%
Restructuring charge................... 33.3 183% -- --% -- --%
Amortization of intangibles............ 11.0 60% 0.6 2% -- --%
------ ---- ------ ---- ------ ----
Total operating expenses....... 85.7 471% 43.9 173% 27.6 87%
------ ---- ------ ---- ------ ----
Loss from operations..................... (74.5) (409)% (27.1) (107)% (20.2) (64)%
Other income, net........................ 2.6 14% 2.8 11% 1.0 3%
Interest expense......................... (1.4) (8)% (0.4) 2% -- --%
------ ---- ------ ---- ------ ----
Loss before provision for income taxes... (73.3) (403)% (24.7) (97)% (19.2) (61)%
Provision for income taxes............... -- --% 0.1 1% -- --%
------ ---- ------ ---- ------ ----
Net loss before cumulative effect of
change in accounting principle......... (73.3) (403)% (24.8) (98)% (19.2) (61)%
Cumulative effect of change in accounting
principle.............................. (1.1) (6)% -- --% -- --%
------ ---- ------ ---- ------ ----
Net loss................................. $(74.4) (409)% $(24.8) (98)% $(19.2) (61)%
====== ==== ====== ==== ====== ====
YEAR ENDED MARCH 31,
-----------------------------
2001 2000 1999
------- ------- -------
Videoconferencing semiconductors............................ $ 9,478 $11,323 $10,302
IP telephony semiconductors................................. 1,878 37 --
Consumer videophone systems................................. 105 3,000 12,935
Video monitoring systems.................................... 915 6,006 2,952
Media hub systems........................................... 432 451 --
------- ------- -------
Product revenues.................................. 12,808 20,817 26,189
------- ------- -------
Videoconferencing licenses and royalties.................... 3,237 4,318 4,248
IP telephony licenses and royalties......................... 825 179 --
Nonrecurring engineering fees............................... -- -- 1,245
Hosted iPBX licenses........................................ 198 70 --
Professional services....................................... 1,160 -- --
------- ------- -------
License and other revenues........................ 5,420 4,567 5,493
------- ------- -------
Total revenues.................................... $18,228 $25,384 $31,682
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