Adaptec 2008 Annual Report Download - page 97

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Exhibit 12.1
PMC-SIERRA, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended
December 28,
2008
December 30,
2007
December 31,
2006
December 31,
2005
December 26,
2004
Earnings:
Income (loss) before income taxes and before
income from equity investees ............ $63,906 $(32,256) $(50,655) $30,094 $48,358
Fixed charges:
Interest expense and amortization of debt
issue costs ........................ 3,830 6,105 5,931 1,571 3,454
Rental interest factor (1) ............... 3,618 3,601 3,503 3,047 3,083
Total fixed charges ............... 7,448 9,706 9,434 4,618 6,537
Earnings (loss) available to cover fixed
charges .............................. 71,348 (22,550) (41,221) 34,712 54,895
Ratio of earnings to fixed charges (2) ......... 9.6x — — 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 and $50.7 million for fiscal years ended
December 30, 2007 and December 31, 2006, respectively.