PMC SIERRA INC - FORM 10-K - EX-12.1 - STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - February 24, 2010

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10-K - FORM 10-K - PMC SIERRA INCd10k.htm
EX-32.1 - CERTIFICATION PURSUANT TO SECTION 906 (CHIEF EXECUTIVE OFFICER) - PMC SIERRA INCdex321.htm
EX-10.6 - FORM OF CHANGE OF CONTROL AGREEMENT - PMC SIERRA INCdex106.htm
EX-23.1 - CONSENT OF DELOITTE & TOUCHE LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS - PMC SIERRA INCdex231.htm
EX-31.2 - CERTIFICATION PURSUANT TO SECTION 302 (CHIEF FINANCIAL OFFICER) - PMC SIERRA INCdex312.htm
EX-31.1 - CERTIFICATION PURSUANT TO SECTION 302 (CHIEF EXECUTIVE OFFICER) - PMC SIERRA INCdex311.htm
EX-32.2 - CERTIFICATION PURSUANT TO SECTION 906 (CHIEF FINANCIAL OFFICER) - PMC SIERRA INCdex322.htm
EX-21.1 - SUBSIDIARIES OF THE REGISTRANT - PMC SIERRA INCdex211.htm

Exhibit 12.1

PMC-SIERRA, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

(in thousands, except ratio of earnings to fixed
charges)

    Year Ended
   December 27,
2009		    December 28,
2008
As adjusted *		    December 30,
2007
As adjusted *		     December 31,
2006
As adjusted *		     December 31,
2005
As adjusted *

Earnings:

             

Income (loss) before income taxes and before income from equity investees

    $ 51,101    $ 58,280    $ (40,385 )    $ (58,140 )    $ 28,794

Fixed charges:

             

Interest expense and amortization of debt issue costs

      4,828      9,263      14,234        13,415        2,780

Rental interest factor (1)

      3,594      3,618      3,601        3,503        3,047
                                    

Total fixed charges

      8,422      12,881      17,835        16,918        5,827
                                    

Earnings (loss) available to cover fixed charges

    $ 59,523    $ 71,161    $ (22,550 )    $ (41,222 )    $ 34,621
                                    

Ratio of earnings to fixed charges (2)

      7.1x      5.5x      —          —          5.9x
                                    

 

* Effective December 29, 2008, the Company retrospectively adopted Financial Accounting Standards Board Accounting Standards Codification 470, the Debt Topic for the accounting of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlements). Accordingly, the comparative consolidated financial statement amounts have been adjusted.

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 $22.6 million and $41.2 million, for fiscal years ended December 30, 2007 and December 31, 2006, respectively.

PMC SIERRA INC Reports

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