Adaptec 2007 Annual Report Download - page 123

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Exhibit 12.1
PMC-SIERRA, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended
December 30,
2007
December 31,
2006
December 31,
2005
December 26,
2004
December 28,
2003
Earnings:
(Loss) income before income taxes and before income from equity
investees $ (32,256) $ (50,655) $ 30,094 $ 48,358 $ (16,703)
Fixed charges:
Interest expense and amortization of debt issuance costs 6,105 5,931 1,571 3,454 10,547
Rental expense interest factor(1)
3,601 3,503 3,047 3,083 4,122
Total fixed charges 9,706 9,434 4,618 6,537 14,669
Earnings (loss) available to cover fixed charges $ (22,550) $ (41,221) $ 34,712 $ 54,895 $ (2,034)
Ratio of earnings to fixed charges (2) — — 7.5x 8.4x —
The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges for the periods indicated. Earnings consist of income (loss) before
provision for income taxes less income from equity investees plus fixed charges. Fixed charges consist of interest charges, amortization of debt issuance costs,
and that portion of rental expense that the Company believes to be a reasonable approximation of the interest factor included in rental expense.
(1) The portion of operating lease rental expense that the Company believes to be a reasonable approximation of the interest factor is deemed to be one-third
of total operating lease rental expense.
(2) Earnings were inadequate to cover fixed charges by $32.3 million, $50.7 million and $16.7 million for fiscal years ended December 30,
2007, December 31, 2006 and December 28, 2003 respectively.
Source: PMC SIERRA INC, 10-K, February 22, 2008