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8-K - FORM 8-K - EMULEX CORP /DE/ | c99648e8vk.htm |
Exhibit 99.01
Investor Contact:
|
Press Contact: | |
Frank Yoshino
|
Katherine Lane | |
Vice President, Finance
|
Director, Corporate Communications | |
+1 714 885-3697
|
+1 714 885-3828 | |
frank.yoshino@emulex.com
|
katherine.lane@emulex.com |
EMULEX ANNOUNCES THIRD QUARTER FISCAL 2010 RESULTS
Exceeding High End of
Earnings Guidance with Revenue Growth of 30 Percent
Year-Over-Year
Year-Over-Year
COSTA
MESA, Calif., April 26, 2010 Emulex Corporation (NYSE:ELX) today announced results for
its third fiscal quarter ended March 28, 2010.
Third Quarter Financial Highlights
| Total net revenues of $102.2 million |
||
| Host Server Products (HSP) net revenues were $69.7 million, or 68% of net
revenues, an increase of 18% year-over-year |
||
| 8Gb/s net revenues increased 323% year-over-year, accounting for 28% of HSP net
revenues during the quarter |
||
| Embedded Storage Products (ESP) net revenues increased 23% sequentially to $32.3
million, or 32% of net revenues |
||
| GAAP gross margin of 63% and non-GAAP gross margins of 68% |
||
| GAAP operating income of $5.5 million, or 5% of total net revenues, and non-GAAP
operating income of $18.6 million, or 18% of total net revenues |
||
| GAAP diluted earnings per
share of $0.16, compared to guidance of $0.05-$0.07 |
||
| Non-GAAP diluted earnings per share of $0.30, exceeding the high end of guidance
of $0.16-$0.18 |
FY10 Q3 Earnings Results
April 26, 2010
Page 2 of 12
April 26, 2010
Page 2 of 12
| Certain discrete tax items added $0.11 to GAAP diluted earnings per share and
$0.12 to non-GAAP diluted earnings per share |
||
| Cash, cash equivalents and investments at the end of the quarter were $287
million |
Business Highlights
| HP offers Emulex OneConnect 10Gb/s Ethernet and Fibre Channel over Ethernet
(FCoE) Universal Converged Network Adapters (UCNAs) for HP ProLiant rack, tower and
blade servers |
||
| IBM selects OneConnect 10Gb/s Ethernet UCNAs for eight IBM System x and
BladeCenter server platforms |
||
| EMC qualifies Emulex OneConnect 10Gb/s iSCSI and FCoE UCNAs across EMC Network
Storage Systems |
||
| NetApp adopts Emulex OneConnect FCoE UCNAs for use with its Ethernet storage
solutions |
||
| Hitachi Data Systems offers Emulex OneConnect FCoE UCNAs for its Universal
Storage Platform and Adaptable Modular Storage Systems |
||
| Compellent selects Emulex 8Gb/s LightPulse®
Fibre Channel Host Bus Adapters (HBAs) for use with its
Storage Center SAN solutions |
||
| Emulex LightPulse Fibre Channel HBAs and OneConnect UCNAs are optimized for use
with the new Intel Xeon processor 5600 series (formerly codenamed WestmereEP) and
the new Intel Xeon processor 7500 series (formerly codenamed NehalemEX) |
||
| Emulex announces VMware vSphere 4 certification of its OneConnect 10Gb/s Ethernet
UCNAs |
||
| DellOro Group reports that Emulex grew faster than the industry and captured
four points of Fibre Channel market share in the fourth quarter of 2009 |
||
| Emulex named FCoE Converged Network Adapter (CNA) market share leader for 2009
according to Infonetics |
||
| Network Computing magazine names Emulex OneConnect UCNAs 2010 New Product of the
Year and Network Infrastructure Product of the Year |
FY10 Q3 Earnings Results
April 26, 2010
Page 3 of 12
April 26, 2010
Page 3 of 12
Financial Results
Third quarter total net revenues were $102.2 million, an increase of 30% from the comparable
quarter of last year and a decrease of 6% sequentially. Third quarter GAAP net income was $13.3
million, or $0.16 per diluted share, compared to GAAP net loss of $6.0 million, or $0.07 per
diluted share, reported in Q3 of fiscal 2009 and GAAP net income of $8.9 million or $0.11 per
diluted share, in Q2 of fiscal 2010. Non-GAAP net income for the third quarter was $24.3 million,
or $0.30 per diluted share. Non-GAAP net income increased 70% from $14.3 million reported in Q2 of
fiscal 2010 and increased 452% from $4.4 million reported in Q3 of fiscal 2009. Reconciliations
between GAAP and non-GAAP results are included in the accompanying financial data. Additionally,
GAAP and non-GAAP diluted earnings per share results for the quarter benefited by $0.11 and $0.12,
respectively, from certain discrete tax items.
President and CEO Jim McCluney commented, Im pleased with the results that the team
delivered during the March quarter, coming in at the high end of our revenue and earnings
guidance. McCluney continued, During the quarter we also announced significant design wins
covering multiple platforms for our award winning OneConnect UCNAs with marquee server and storage
OEMs including EMC, HP, Hitachi Data Systems, IBM and NetApp.
With our expanding number of both announced and unannounced design wins, Emulex continues to
deliver on our commitment to growth and leadership in the emerging network convergence market,
concluded McCluney.
Business Outlook
Although actual results may vary depending on a variety of factors, many of which are outside our
control, including the current economic downturn and uncertainty resulting from recent disruptions
in global credit and equity markets, Emulex is providing guidance for its fourth fiscal quarter
ending June 27, 2010. For the fourth quarter fiscal 2010,
Emulex is forecasting total net revenues in the range of
$100-$103 million. We expect non-GAAP
earnings per diluted share could amount to $0.16-$0.18 in the fourth quarter. On a GAAP basis,
Emulex expects earnings per diluted share of $0.05-$0.07 in the fourth quarter.
GAAP estimates for the fourth quarter reflect approximately $0.11 per diluted share in expected charges
arising primarily from amortization of intangibles and stock-based compensation.
FY10 Q3 Earnings Results
April 26, 2010
Page 4 of 12
April 26, 2010
Page 4 of 12
About Emulex
Emulex is the leader in converged networking solutions for the data center. Our Connectivity
Continuum architecture provides intelligent networking services that transition todays
infrastructure into tomorrows unified network ecosystem. Emulex provides a single framework that
intelligently connects every server, network and storage device within the data center. Through
strategic collaboration and integrated partner solutions, Emulex provides its customers with
industry leading business value, operational flexibility and strategic advantage. Emulex is listed
on the New York Stock Exchange (NYSE:ELX) and has corporate headquarters in Costa Mesa, California.
News releases and other information about Emulex Corporation are available at
http://www.emulex.com.
Note Regarding Non-GAAP Financial Information. To supplement the condensed consolidated financial
statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we
have included the following non-GAAP financial measures in this press release or in the webcast to
discuss our financial results for the third fiscal quarter which may be accessed via our website at
www.emulex.com: (i) non-GAAP gross margin, (ii) non-GAAP operating expenses, (iii) non-GAAP
operating income, (iv) non-GAAP net income, and (v) non-GAAP diluted earnings per share. These
non-GAAP financial measures exclude certain expenses and reflect an additional way of viewing
aspects of our operations that, when viewed with the GAAP results and the reconciliations to
corresponding GAAP financial measures, provide a more complete understanding of our results of
operations and the factors and trends affecting our business. However, these non-GAAP measures
should be considered as a supplement to, and not as a substitute for, or superior to, the
corresponding measures calculated in accordance with GAAP. We use our non-GAAP financial measures
internally to better understand and evaluate our business, prepare annual budgets, and in measuring
performance for some forms of compensation.
Our non-GAAP financial measures reflect adjustments based on the following items, as well as the
related income tax effects:
Amortization of intangibles. Amortization of intangibles generally represents costs
incurred by an acquired company or other third party to build value prior to our acquisition of the
intangible assets. As such, it is effectively part of the transaction costs of the acquisition
rather than ongoing costs of operating our core business. As a result, we believes that exclusion
of these costs in presenting non-GAAP financial measures provides management and investors a
more effective means of evaluating its historical performance and projected costs and the potential
for realizing cost efficiencies within our core business. Amortization of intangibles will recur
in future periods.
FY10 Q3 Earnings Results
April 26, 2010
Page 5 of 12
April 26, 2010
Page 5 of 12
Stock-based compensation. Although stock-based compensation represents an important
part of incentive compensation offered to our key employees, we believe that exclusion of the
impact of stock-based compensation assists management and investors in evaluating the period over
period performance of our business operations and in comparing our performance with those of our
competitors. Stock-based compensation expense will recur in future periods.
Severance and associated costs. We have incurred severance and certain related costs
in connection with the change in employment status of certain employees, including terminations
resulting from elimination of certain positions. We believe that the exclusion of such severance
and related costs from the relevant non-GAAP financial measures enables management and investors to
more effectively evaluate historical performance and projected costs. While severance and
associated costs are generally infrequent in nature, we may incur severance or associated costs in
response to changing economic conditions or in connection with any future acquisitions.
Broadcoms unsolicited takeover proposal and related litigation costs. We believe that
exclusion of charges related to Broadcoms unsolicited takeover proposal and related litigation
costs is useful to management and investors in evaluating the performance of our ongoing operations
on a period-to-period basis and relative to our competitors. Such costs are generally unrelated to
our core business and, while such costs will continue until our outstanding litigation with
Broadcom has been resolved, we believe that such costs are infrequent in nature.
Tax impact associated with the option exchange. During the first quarter of fiscal
2010 we completed a shareholder approved exchange of options for restricted stock which resulted in
a tax benefit. We believe the exclusion of the tax benefit related to this option exchange is
useful to management and investors in evaluating the performance of our ongoing operations on a
period-to-period basis and relative to our competitors. In this regard, we note that charges of
this type are infrequent in nature.
Timing difference due to using an actual interim effective tax rate versus an annualized
effective tax rate. Although we are using an actual interim effective tax rate instead of an
annualized effective tax rate in calculating GAAP net income, we believe that eliminating the tax
impact associated with this timing difference is useful to management and investors in evaluating
the performance of our ongoing operations on a period-to-period basis and relative to our
competitors. In this regard, we note that a similar adjustment may recur in future periods when the
use of an annualized effective tax rate would be distortive.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: With the
exception of historical information, the statements set forth above, including, without limitation,
those contained in the discussion of Business Outlook above, and the reconciliation of
forward-looking diluted earnings per share below, contain forward-looking statements that involve
risk and uncertainties. We expressly disclaim any obligation or undertaking to release
FY10 Q3 Earnings Results
April 26, 2010
Page 6 of 12
April 26, 2010
Page 6 of 12
publicly any updates or changes to these forward-looking statements that may be made to reflect any
future events or circumstances. We wish to caution readers that a number of important factors
could cause actual results to differ materially from those in the forward-looking statements. The
fact that the economy generally, and the technology and storage segments specifically, have been in
a state of uncertainty makes it difficult to determine if past experience is a good guide to the
future and makes it impossible to determine if markets will grow or shrink in the short term.
Recent disruptions in world credit and equity markets and the resulting economic uncertainty for
our customers and the storage networking market as a whole has resulted in a downturn in
information technology spending that has and could continue to adversely affect our revenues and
results of operations. Furthermore, the effect of any actual or potential unsolicited offers to
acquire us may have an adverse effect on our operations. As a result of this uncertainty, we are
unable to predict with any accuracy what future results might be. Other factors affecting these
forward-looking statements include, but are not limited to, the following: slower than expected
growth of the storage networking market or the failure of our Original Equipment Manufacturer (OEM)
customers to successfully incorporate our products into their systems; our dependence on a limited
number of customers and the effects of the loss of, or decrease or delays in orders by any such
customers, or the failure of such customers to make payments; the emergence of new or stronger
competitors as a result of consolidation movements in the market; the timing and market acceptance
of our or our OEM customers new or enhanced products; the variability in the level of our backlog
and the variable and seasonal procurement patterns of our customers; impairment charges, including
but not limited to goodwill and intangible assets; changes in tax rates or legislation; the effects
of terrorist activities, natural disasters and resulting political or economic instability; the
highly competitive nature of the markets for tour products as well as pricing pressures that may
result from such competitive conditions; the effect of rapid migration of customers towards newer,
lower cost product platforms; possible transitions from board or box level to application specific
computer chip solutions for selected applications; a shift in unit product mix from higher-end to
lower-end mezzanine card products; a decrease in the average unit selling prices or an increase in
the manufactured cost of our products; delays in product development; our reliance on third-party
suppliers and subcontractors for components and assembly; any inadequacy of our intellectual
property protection or the potential for third-party claims of infringement; our ability to attract
and retain key technical personnel; our ability to benefit from research and development
activities; our dependence on international sales and internationally produced products; the effect
of acquisitions; changes in accounting standards; and the potential effects of global warming and
any resulting regulatory changes on our business. These and other factors could cause actual
results to differ materially from those in the forward-looking statements and are discussed in our
filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K and
10-Q, under the caption Risk Factors.
This news release refers to various products and companies by their trade names. In most, if not
all, cases these designations are claimed as trademarks or registered trademarks by their
respective companies.
FY10 Q3 Earnings Results
April 26, 2010
Page 7 of 12
April 26, 2010
Page 7 of 12
EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net revenues |
$ | 102,204 | $ | 78,568 | $ | 296,021 | $ | 298,925 | ||||||||
Cost of sales |
37,784 | 31,766 | 112,711 | 116,186 | ||||||||||||
Gross profit |
64,420 | 46,802 | 183,310 | 182,739 | ||||||||||||
Operating expenses: |
||||||||||||||||
Engineering and development |
31,338 | 33,409 | 94,417 | 99,293 | ||||||||||||
Selling and marketing |
13,743 | 13,775 | 42,415 | 41,561 | ||||||||||||
General and administrative |
12,099 | 7,324 | 36,274 | 26,288 | ||||||||||||
Amortization of other intangible assets |
1,698 | 699 | 5,094 | 4,637 | ||||||||||||
Total operating expenses |
58,878 | 55,207 | 178,200 | 171,779 | ||||||||||||
Operating income (loss) |
5,542 | (8,405 | ) | 5,110 | 10,960 | |||||||||||
Nonoperating income (loss): |
||||||||||||||||
Interest income |
1 | 613 | 213 | 3,686 | ||||||||||||
Interest expense |
(1 | ) | 7 | (5 | ) | (29 | ) | |||||||||
Other income (expense), net |
(166 | ) | 168 | (68 | ) | 365 | ||||||||||
Total nonoperating income (loss) |
(166 | ) | 788 | 140 | 4,022 | |||||||||||
Income (loss) before income taxes |
5,376 | (7,617 | ) | 5,250 | 14,982 | |||||||||||
Income tax provision (benefit) |
(7,933 | ) | (1,652 | ) | (20,839 | ) | 2,929 | |||||||||
Net income (loss) |
$ | 13,309 | $ | (5,965 | ) | $ | 26,089 | $ | 12,053 | |||||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | 0.16 | $ | (0.07 | ) | $ | 0.32 | $ | 0.15 | |||||||
Diluted |
$ | 0.16 | $ | (0.07 | ) | $ | 0.32 | $ | 0.14 | |||||||
Number of shares used in per share
computations: |
||||||||||||||||
Basic |
80,156 | 80,547 | 79,960 | 80,723 | ||||||||||||
Diluted |
81,535 | 80,547 | 81,076 | 81,244 | ||||||||||||
FY10 Q3 Earnings Results
April 26, 2010
Page 8 of 12
April 26, 2010
Page 8 of 12
EMULEX CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
March 28, | June 28, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 253,169 | $ | 294,136 | ||||
Investments |
34,297 | 8,289 | ||||||
Accounts and other receivables, net |
63,100 | 51,566 | ||||||
Inventories |
16,780 | 10,665 | ||||||
Prepaid income taxes |
17,563 | 17,083 | ||||||
Prepaid expenses and other current assets |
7,726 | 8,021 | ||||||
Deferred income taxes |
19,428 | 16,793 | ||||||
Total current assets |
412,063 | 406,553 | ||||||
Property and equipment, net |
64,461 | 74,794 | ||||||
Intangible assets, net |
131,560 | 130,830 | ||||||
Deferred income taxes |
25,381 | 16,002 | ||||||
Other assets |
49,391 | 30,739 | ||||||
$ | 682,856 | $ | 658,918 | |||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 32,032 | $ | 28,786 | ||||
Accrued liabilities |
28,637 | 23,454 | ||||||
Total current liabilities |
60,669 | 52,240 | ||||||
Other liabilities |
4,414 | 5,826 | ||||||
Accrued taxes |
29,990 | 31,408 | ||||||
Total liabilities |
95,073 | 89,474 | ||||||
Total stockholders equity |
587,783 | 569,444 | ||||||
$ | 682,856 | $ | 658,918 | |||||
FY10 Q3 Earnings Results
April 26, 2010
Page 9 of 12
April 26, 2010
Page 9 of 12
EMULEX CORPORATION AND SUBSIDIARIES
Supplemental Information
Supplemental Information
Historical Net Revenues by Channel and Territory:
Q3 FY | Q3 FY | |||||||||||||||||||
2010 | % Total | 2009 | % Total | |||||||||||||||||
($000s) | Revenues | Revenues | Revenues | Revenues | % Change | |||||||||||||||
Revenues from OEM customers |
$ | 86,017 | 84 | % | $ | 67,741 | 86 | % | 27 | % | ||||||||||
Revenues from distribution |
16,011 | 16 | % | 10,885 | 14 | % | 47 | % | ||||||||||||
Other |
176 | nm | (58 | ) | nm | 403 | % | |||||||||||||
Total net revenues |
$ | 102,204 | 100 | % | $ | 78,568 | 100 | % | 30 | % | ||||||||||
United States |
$ | 35,582 | 35 | % | $ | 28,304 | 36 | % | 26 | % | ||||||||||
Europe, Middle East and Africa |
32,309 | 32 | % | 23,698 | 30 | % | 36 | % | ||||||||||||
Asia-Pacific |
33,517 | 33 | % | 25,561 | 33 | % | 31 | % | ||||||||||||
Rest of world |
796 | nm | 1,005 | 1 | % | -21 | % | |||||||||||||
Total net revenues |
$ | 102,204 | 100 | % | $ | 78,568 | 100 | % | 30 | % | ||||||||||
nm not meaningful
Summary of Stock-based Compensation:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
($000s) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Cost of sales |
$ | 284 | $ | 400 | $ | 949 | $ | 1,110 | ||||||||
Engineering & development |
1,703 | 2,390 | 5,415 | 8,172 | ||||||||||||
Selling & marketing |
1,230 | 1,028 | 2,593 | 2,999 | ||||||||||||
General & administrative |
1,429 | 1,598 | 4,253 | 5,654 | ||||||||||||
Total stock-based compensation |
$ | 4,646 | $ | 5,416 | $ | 13,210 | $ | 17,935 | ||||||||
Reconciliation of GAAP gross margin to non-GAAP gross margin:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
GAAP gross margin |
63.0 | % | 59.6 | % | 61.9 | % | 61.1 | % | ||||||||
Items excluded from GAAP gross margin
to calculate non-GAAP gross margin: |
||||||||||||||||
Stock-based compensation |
0.3 | % | 0.5 | % | 0.3 | % | 0.4 | % | ||||||||
Amortization of intangibles |
4.6 | % | 6.0 | % | 4.8 | % | 4.7 | % | ||||||||
Severance and associated costs |
| 0.1 | % | | 0.1 | % | ||||||||||
Non-GAAP gross margin |
67.9 | % | 66.2 | % | 67.0 | % | 66.3 | % | ||||||||
FY10 Q3 Earnings Results
April 26, 2010
Page 10 of 12
April 26, 2010
Page 10 of 12
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
($000s) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
GAAP operating expenses, as presented
above |
$ | 58,878 | $ | 55,207 | $ | 178,200 | $ | 171,779 | ||||||||
Items excluded from GAAP operating
expenses to calculate non-GAAP
operating
expenses |
||||||||||||||||
Stock-based compensation |
(4,362 | ) | (5,016 | ) | (12,261 | ) | (16,825 | ) | ||||||||
Amortization of other intangibles |
(1,698 | ) | (699 | ) | (5,094 | ) | (4,637 | ) | ||||||||
Severance and associated costs |
| (1,341 | ) | (964 | ) | (3,997 | ) | |||||||||
Net charges associated with Broadcoms
unsolicited takeover proposal and
related litigation costs |
(2,000 | ) | | (6,094 | ) | | ||||||||||
Impact on operating income |
(8,060 | ) | (7,056 | ) | (24,413 | ) | (25,459 | ) | ||||||||
Non-GAAP operating expenses |
$ | 50,818 | $ | 48,151 | $ | 153,787 | $ | 146,320 | ||||||||
Reconciliation of GAAP operating income (loss) to non-GAAP operating income:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
($000s) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
GAAP operating income (loss) as presented
above |
$ | 5,542 | $ | (8,405 | ) | $ | 5,110 | $ | 10,960 | |||||||
Items excluded from GAAP operating
income to calculate non-GAAP operating
income: |
||||||||||||||||
Stock-based compensation |
4,646 | 5,416 | 13,210 | 17,935 | ||||||||||||
Amortization of intangibles |
6,424 | 5,428 | 19,272 | 18,828 | ||||||||||||
Severance and associated costs |
| 1,387 | 964 | 4,248 | ||||||||||||
Net charges associated with Broadcoms
unsolicited takeover proposal and
related litigation costs |
2,000 | | 6,094 | | ||||||||||||
Impact on operating income (loss) |
13,070 | 12,231 | 39,540 | 41,011 | ||||||||||||
Non-GAAP operating income |
$ | 18,612 | $ | 3,826 | $ | 44,650 | $ | 51,971 | ||||||||
FY10 Q3 Earnings Results
April 26, 2010
Page 11 of 12
April 26, 2010
Page 11 of 12
Reconciliation of GAAP net income (loss) to non-GAAP net income:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
($000s) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
GAAP net income (loss), as presented above |
$ | 13,309 | $ | (5,965 | ) | $ | 26,089 | $ | 12,053 | |||||||
Items excluded from GAAP net income (loss)
to calculate non-GAAP net income: |
||||||||||||||||
Stock-based compensation |
4,646 | 5,416 | 13,210 | 17,935 | ||||||||||||
Amortization of intangibles |
6,424 | 5,428 | 19,272 | 18,828 | ||||||||||||
Severance and associated costs |
| 1,387 | 964 | 4,248 | ||||||||||||
Net charges associated with Broadcoms
unsolicited takeover proposal and related
litigation costs |
2,000 | | 6,094 | | ||||||||||||
Income tax effect of above items |
(4,822 | ) | (1,856 | ) | (14,654 | ) | (11,525 | ) | ||||||||
Tax impact associated with the option
exchange |
| | (3,982 | ) | | |||||||||||
Timing difference due to using an actual
interim
effective tax rate versus an annualized
effective tax rate |
2,780 | | (1,415 | ) | | |||||||||||
Impact on net income (loss) |
11,028 | 10,375 | 19,489 | 29,486 | ||||||||||||
Non-GAAP net income |
$ | 24,337 | $ | 4,410 | $ | 45,578 | $ | 41,539 | ||||||||
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per
share:
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, | March 29, | March 28, | March 29, | |||||||||||||
(Shares in 000s) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
GAAP diluted earnings (loss) per share, as
presented above |
$ | 0.16 | $ | (0.07 | ) | $ | 0.32 | $ | 0.14 | |||||||
Items excluded from GAAP diluted earnings (loss)
per share to calculate non-GAAP diluted earnings
per share, net of tax effect: |
||||||||||||||||
Stock-based compensation |
0.04 | 0.07 | 0.10 | 0.19 | ||||||||||||
Amortization of intangibles |
0.05 | 0.04 | 0.15 | 0.14 | ||||||||||||
Severance and associated costs |
| 0.01 | 0.00 | 0.03 | ||||||||||||
Net charges associated with Broadcoms
unsolicited takeover proposal and related
litigation costs |
0.02 | | 0.05 | | ||||||||||||
Tax impact associated with the option exchange |
| | (0.05 | ) | | |||||||||||
Timing difference due to using an actual interim
effective tax rate versus an annualized
effective tax rate |
0.03 | | (0.02 | ) | | |||||||||||
Impact on diluted earnings (loss) per share |
0.14 | 0.12 | 0.23 | 0.36 | ||||||||||||
Non-GAAP diluted earnings per share |
$ | 0.30 | $ | 0.05 | $ | 0.55 | $ | 0.50 | ||||||||
Diluted shares used in non-GAAP
per share computations |
81,535 | 80,862 | 81,076 | 81,244 | ||||||||||||
FY10 Q3 Earnings Results
April 26, 2010
Page 12 of 12
April 26, 2010
Page 12 of 12
Forward-Looking Diluted Earnings per Share Reconciliation:
Guidance for | ||||
Three Months | ||||
Ending | ||||
June 27, 2010 | ||||
Non-GAAP diluted earnings per share guidance
|
$0.16-$0.18 | |||
Items excluded, net of tax, from non-GAAP diluted earnings per share to
calculate GAAP diluted earnings per share guidance: |
||||
Amortization of intangibles |
0.05 | |||
Stock-based compensation |
0.04 | |||
Other charges associated with Broadcoms unsolicited takeover
proposal and related litigation costs |
0.01 | |||
Timing difference due to using an actual interim effective tax rate
versus an annualized effective tax rate |
0.01 | |||
GAAP diluted earnings per share guidance |
$0.05-$0.07 | |||