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Table of Contents
Sales and Distribution of Shares by New SAC
New SAC, an exempted company incorporated with limited liability under the laws of the Cayman Islands originally acquired us in
November 2000 from Seagate Technology, Inc. From November 2000 to December 2002, we were a wholly owned subsidiary of New SAC.
From time to time since December 2002, New SAC has sold and distributed our common shares to its shareholders which included certain
current and former directors, officers and employees of the Company. As of January 3, 2006, New SAC had distributed substantially all of our
common shares that it held to its shareholders pursuant to the distributions described below, and New SAC no longer owns any of our common
shares.
From May 2005 through January 2006, New SAC distributed approximately 100 million of our common shares to its more than 200
shareholders in four quarterly distributions. These distributed shares are illiquid and not eligible for re-sale in the public markets under Rule
144 until 12 months from the date of their distribution out of New SAC unless they are subsequently registered for resale. The first of these
quarterly distributed shares became eligible for resale under Rule 144 on May 16, 2006 and the second quarterly distribution became eligible
for resale under Rule 144 on July 26, 2006. The two remaining quarterly distributions of 25 million shares each will become eligible for resale
on October 21, 2006 and January 3, 2007.
In addition, from September 2005 through January 2006, New SAC distributed approximately 50 million of our common shares through
five monthly distributions to its shareholders. These shares have been registered for resale pursuant to a registration statement on Form S-
3 that
was declared effective by the Securities and Exchange Commission in December 2005.
Results of Operations
We list in the tables below the historical consolidated statements of operations in dollars and as a percentage of revenue for the fiscal
years indicated.
43
Fiscal Years Ended
June 30,
2006
July 1,
2005
July 2,
2004
(in millions)
Revenue
$
9,206
$
7,553
$
6,224
Cost of revenue
7,069
5,880
4,765
Gross margin
2,137
1,673
1,459
Product development
805
645
666
Marketing and administrative
447
306
290
Amortization of intangibles
7
—
—
Restructuring
4
—
59
Income from operations
874
722
444
Other income (expense), net
50
10
(16
)
Income before income taxes
924
732
428
Provision for (benefit from) income taxes
84
25
(101
)
Net income
$
840
$
707
$
529