Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - POLYCOM INC | d287052d8k.htm |
Exhibit 99.1
| Investor Contact: |
Laura Graves | |||
| Polycom, Inc. | ||||
| 925.924.5630 | ||||
| laura.graves@polycom.com | ||||
| Press Contact: |
Shawn Dainas | |||
| Polycom, Inc. | ||||
| 925.924.5676 | ||||
| shawn.dainas@polycom.com | ||||
Polycom Reports Fourth Quarter and Fiscal Year 2011 Earnings
Q4 Revenue Growth of 20 Percent Year-over-Year to a Record $407 Million;
Q4 Operating Cash Flow Growth of 192 Percent Year-over-Year to a Record $122 Million
PLEASANTON, Calif. – Jan. 23, 2012 – Polycom, Inc. (Nasdaq: PLCM), the global leader in standards-based unified communications (UC), today reported its earnings for the fourth quarter and fiscal year ended December 31, 2011.
Fourth quarter 2011 consolidated net revenues were a record $407 million, compared to $340 million for the fourth quarter of 2010. GAAP net income for the fourth quarter of 2011 was $50 million, or 28 cents per diluted share, compared to $33 million, or 19 cents per diluted share, for the same period last year. Non-GAAP net income for the fourth quarter of 2011 was $74 million, or 41 cents per diluted share, compared to non-GAAP net income of $43 million, or 24 cents per diluted share, for the fourth quarter of 2010. Note that the share and per share data for all periods presented in this release have been adjusted to reflect the two-for-one stock split that was effective July 1, 2011.
For the year ended December 31, 2011, net revenues were $1.5 billion, compared to $1.2 billion for the year ended December 31, 2010. GAAP net income for the year ended December 31, 2011 was $136 million, or 75 cents per diluted share, compared to GAAP net income of $68 million, or 39 cents per diluted share, for the same period last year. Non-GAAP net income for the year ended December 31, 2011 was $213 million, or $1.18 per diluted share, compared to $133 million, or $0.75 per diluted share, for the same period last year.
The reconciliation between GAAP net income and non-GAAP net income is provided in the tables at the end of this release.
On a geographic basis, consolidated net revenues for the fourth quarter of 2011 were comprised of:
| • | 48 percent Americas, or $193.8 million, an increase of 7 percent year-over-year; |
| • | 27 percent Europe, Middle East, and Africa, or $109.7 million, an increase of 28 percent year-over-year; and |
| • | 25 percent Asia Pacific, or $103.5 million, an increase of 42 percent year-over-year. |
“2011 closed strong with full-year revenues of $1.5 billion, driven by particular strength in sales of the Polycom® RealPresence™ Platform and broad geographic growth,” said Andrew Miller, Polycom president and CEO. “Enabled by Polycom’s innovations, we experienced unprecedented demand for our secure, interoperable, unified collaboration solutions by both enterprise and service provider customers.
Leveraging our industry-leading technology and powerful network of strategic partners, Polycom’s cloud, mobility, and software-driven infrastructure strategy is beginning to yield and we look forward to another year of solid growth in 2012.”
“Polycom generated 20 percent year-over-year revenue growth in Q4, which drove revenues, operating profits, and operating cash flow to record levels,” said Michael Kourey, Polycom’s executive vice president, finance and administration, and CFO. “We are pleased to have achieved significant operating margin expansion and unprecedented operating cash flow of $122 million in the fourth quarter. Net of the strategic acquisitions and stock repurchases in the period, Polycom exited 2011 with $592 million in cash and investments and no debt.”
Q4 2011 Business Highlights
| • | Strong revenue growth in both Europe and Asia Pacific with emerging geographies up over 40 percent year-over-year |
| • | North American sales management structure with key leadership hires in place |
| • | Polycom RealPresence Platform generated revenue growth of 45 percent year-over-year |
| • | Acquired ViVu, Inc., a video collaboration software company, reinforcing Polycom’s cloud and software strategy |
| • | Launched Polycom® RealPresence™ Mobile software for Apple® iPad® 2 and the leading Android devices |
| • | Expanded Microsoft® Lync™ integration with new Polycom® CX7000 unified group video collaboration system |
Earnings Call Details
Polycom will hold a conference call today, Jan. 23, 2012, at 5 p.m. EST/2 p.m. PST to discuss its fourth quarter earnings. You may participate by viewing the webcast at www.polycom.com/investors or, for callers in the US and Canada, by calling 888.227.5826; and for callers outside of the US and Canada, by calling 303.223.2680. The pass code for the call is “Polycom.” A replay of the call will also be available at www.polycom.com or, for callers in the US and Canada, at 800.633.8284; and for callers outside of the US and Canada, at 402.977.9140. The access number for the replay is 21572693. A replay of the call will be available on www.polycom.com for approximately 12 months.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 regarding future events, future demand for our products, and the future performance of the Company, including statements regarding the expected growth for Polycom in 2012. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the impact of competition on our product sales and for our customers and partners; the impact of increased competition due to consolidation in our industry or competition from companies that are larger or that have greater resources than we do; potential fluctuations in results and future growth rates; risks associated with general economic conditions and external market factors; the market acceptance of our products and changing market demands, including demands for differing technologies or product and services offerings; our ability to successfully integrate our acquisitions into our business; possible delays in the development, availability and shipment of new products; increasing costs and differing uses of capital; changes in key personnel that may cause disruption to the business; any disruptive impact to us that may result from new executive hires; the impact of restructuring actions; and the impact of global conflicts that may adversely impact our business. Many of these risks and uncertainties are discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, and in other reports filed by Polycom with the SEC. Polycom disclaims any intent or obligations to update these forward-looking statements.
Polycom reserves the right to modify future product plans at any time. Products and/or related specifications referenced in this press release are not guaranteed and will be delivered on a when and if available basis.
GAAP to non-GAAP Reconciliation
To supplement our consolidated financial statements presented on a GAAP basis, Polycom uses non-GAAP measures of operating results, net income and income per share, which are adjusted to exclude certain costs, expenses, gains, and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Polycom’s underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before gains, losses, or other charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or diluted net income per share prepared in accordance with generally accepted accounting principles in the United States.
About Polycom
Polycom is the global leader in standards-based unified communications (UC) solutions for telepresence, video, and voice, powered by the Polycom RealPresence platform. The RealPresence platform interoperates with the broadest range of business, mobile and social applications and devices. More than 400,000 organizations trust Polycom solutions to collaborate and meet face to face from any location for more productive and effective engagement with colleagues, partners, customers and prospects. Polycom, together with its broad partner ecosystem, provides customers with the best TCO, scalability, and security – on-premises, hosted or cloud delivered. Visit www.polycom.com or connect with Polycom on Twitter, Facebook, and LinkedIn.
© 2012 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom “Triangles” logo and the names and marks associated with Polycom’s products are trademarks and/or service marks of Polycom, Inc. and are registered and/or common law marks in the United States and various other countries. All other trademarks are property of their respective owners.
POLYCOM, INC.
GAAP to Non-GAAP Reconciliation
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
| December 31, 2011 | December 31, 2011 | |||||||||||||||||||||||||||||
| GAAP | Excluded | Non-GAAP | GAAP | Excluded | Non-GAAP | |||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||
| Product revenues |
$ | 318,425 | $ | — | $ | 318,425 | $ | 1,207,787 | $ | — | $ | 1,207,787 | ||||||||||||||||||
| Service revenues |
88,582 | — | 88,582 | 288,011 | — | 288,011 | ||||||||||||||||||||||||
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| Total revenues |
407,007 | — | 407,007 | 1,495,798 | — | 1,495,798 | ||||||||||||||||||||||||
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| Cost of revenues: |
||||||||||||||||||||||||||||||
| Cost of product revenues |
128,712 | 4,022 | (a) | 124,690 | 481,634 | 15,233 | (a) | 466,401 | ||||||||||||||||||||||
| Cost of service revenues |
34,268 | 929 | (b) | 33,339 | 116,808 | 3,904 | (b) | 112,904 | ||||||||||||||||||||||
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| Total cost of revenues |
162,980 | 4,951 | 158,029 | 598,442 | 19,137 | 579,305 | ||||||||||||||||||||||||
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| Gross profit |
244,027 | (4,951 | ) | 248,978 | 897,356 | (19,137 | ) | 916,493 | ||||||||||||||||||||||
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| Operating expenses: |
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| Sales and marketing |
114,897 | 8,213 | (b) | 106,684 | 435,614 | 27,404 | (b) | 408,210 | ||||||||||||||||||||||
| Research and development |
53,951 | 4,403 | (b) | 49,548 | 201,067 | 15,394 | (b) | 185,673 | ||||||||||||||||||||||
| General and administrative |
20,908 | 4,249 | (c) | 16,659 | 82,901 | 17,297 | (c) | 65,604 | ||||||||||||||||||||||
| Amortization of purchased intangibles |
3,738 | 3,738 | — | 9,831 | 9,831 | — | ||||||||||||||||||||||||
| Restructuring costs |
4,657 | 4,657 | — | 9,396 | 9,396 | — | ||||||||||||||||||||||||
| Acquisition-related costs |
1,764 | 1,764 | — | 9,688 | 9,688 | — | ||||||||||||||||||||||||
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| Total operating expenses |
199,915 | 27,024 | 172,891 | 748,497 | 89,010 | 659,487 | ||||||||||||||||||||||||
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| Operating income |
44,112 | (31,975 | ) | 76,087 | 148,859 | (108,147 | ) | 257,006 | ||||||||||||||||||||||
| Other income (expense), net |
1,666 | 421 | (d) | 1,245 | (1,639 | ) | (79 | ) | (d) | (1,560 | ) | |||||||||||||||||||
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| Income before provision for income taxes |
45,778 | (31,554 | ) | 77,332 | 147,220 | (108,226 | ) | 255,446 | ||||||||||||||||||||||
| Provision for (benefit from) income taxes |
(3,795 | ) | (7,105 | ) | (e) | 3,310 | 11,406 | (30,799 | ) | (e) | 42,205 | |||||||||||||||||||
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| Net income |
$ | 49,573 | $ | (24,449 | ) | $ | 74,022 | $ | 135,814 | $ | (77,427 | ) | $ | 213,241 | ||||||||||||||||
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| Basic net income per share |
$ | 0.28 | $ | (0.14 | ) | $ | 0.42 | $ | 0.77 | $ | (0.44 | ) | $ | 1.21 | ||||||||||||||||
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| Diluted net income per share |
$ | 0.28 | $ | (0.13 | ) | $ | 0.41 | $ | 0.75 | $ | (0.43 | ) | $ | 1.18 | ||||||||||||||||
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| Weighted average shares outstanding for basic net income per share |
176,729 | 176,729 | 176,426 | 176,426 | ||||||||||||||||||||||||||
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| Weighted average shares outstanding for diluted net income per share |
179,331 | 179,331 | 181,195 | 181,195 | ||||||||||||||||||||||||||
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| (a) | For the three months ended December 31, 2011, the excluded amount includes $3,043 related to the amortization of purchased intangibles for core and existing technologies, $798 for stock-based compensation expense recorded during the period and $181 related to the effect of stock-based compensation on warranty expense rates. For the twelve months ended December 31, 2011, the excluded amount includes $11,911 related to the amortization of purchased intangibles for core and existing technologies, $2,815 for stock-based compensation expense recorded during the period and $507 related to the effect of stock-based compensation on warranty expense rates. |
| (b) | Excluded amount represents stock-based compensation expense recorded during the period. |
| (c) | For the three months ended December 31, 2011, the excluded amount includes $4,336 for stock-based compensation expense recorded during the period and ($87) adjustment for the legal costs related to the indemnification of a former officer of the Company. For the twelve months ended December 31, 2011, the excluded amount includes $15,745 for stock-based compensation expense recorded during the period and $1,552 for the legal costs related to the indemnification of a former officer of the Company. |
| (d) | Excluded amount represents the impairment or recovery of an investment in a private company. |
| (e) | For the three months ended December 31, 2011 the excluded amount represents the tax impact on expenses which are excluded in items (a)-(d) above, as well as $2,124 related to the adoption of deferred tax accounting in certain foreign subsidiaries. For the twelve months ended December 31, 2011, the excluded amount represents the tax impact on expenses which are excluded in items (a)—(d) above, as well as a $7,487 benefit related to the resolution of a multi-year tax audit and $2,124 related to the adoption of deferred tax accounting in certain foreign subsidiaries. |
POLYCOM, INC.
GAAP to Non-GAAP Reconciliation
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||
| December 31, 2010 | December 31, 2010 | |||||||||||||||||||||||||||||
| GAAP | Excluded | Non-GAAP | GAAP | Excluded | Non-GAAP | |||||||||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||||||||
| Product revenues |
$ | 282,607 | $ | — | $ | 282,607 | $ | 1,010,955 | $ | — | $ | 1,010,955 | ||||||||||||||||||
| Service revenues |
57,024 | — | 57,024 | 207,534 | — | 207,534 | ||||||||||||||||||||||||
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| Total revenues |
339,631 | — | 339,631 | 1,218,489 | — | 1,218,489 | ||||||||||||||||||||||||
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| Cost of revenues: |
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| Cost of product revenues |
109,856 | 4,092 | (a) | 105,764 | 401,319 | 16,402 | (a) | 384,917 | ||||||||||||||||||||||
| Cost of service revenues |
26,830 | 952 | (b) | 25,878 | 101,220 | 3,940 | (b) | 97,280 | ||||||||||||||||||||||
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| Total cost of revenues |
136,686 | 5,044 | 131,642 | 502,539 | 20,342 | 482,197 | ||||||||||||||||||||||||
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| Gross profit |
202,945 | (5,044 | ) | 207,989 | 715,950 | (20,342 | ) | 736,292 | ||||||||||||||||||||||
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| Operating expenses: |
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| Sales and marketing |
104,717 | 5,928 | (b) | 98,789 | 387,208 | 26,586 | (b) | 360,622 | ||||||||||||||||||||||
| Research and development |
40,568 | 2,479 | (b) | 38,089 | 148,991 | 10,266 | (b) | 138,725 | ||||||||||||||||||||||
| General and administrative |
19,034 | 3,918 | (c) | 15,116 | 74,661 | 16,931 | (c) | 57,730 | ||||||||||||||||||||||
| Amortization of purchased intangibles |
1,380 | 1,380 | — | 5,647 | 5,647 | — | ||||||||||||||||||||||||
| Restructuring costs |
1,565 | 1,565 | — | 8,139 | 8,139 | — | ||||||||||||||||||||||||
| Litigation reserves and payments |
— | — | — | 1,235 | 1,235 | — | ||||||||||||||||||||||||
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| Total operating expenses |
167,264 | 15,270 | 151,994 | 625,881 | 68,804 | 557,077 | ||||||||||||||||||||||||
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| Operating income |
35,681 | (20,314 | ) | 55,995 | 90,069 | (89,146 | ) | 179,215 | ||||||||||||||||||||||
| Other income (expense), net |
159 | — | 159 | (7,772 | ) | (5,324 | ) | (d) | (2,448 | ) | ||||||||||||||||||||
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| Income before provision for income taxes |
35,840 | (20,314 | ) | 56,154 | 82,297 | (94,470 | ) | 176,767 | ||||||||||||||||||||||
| Provision for income taxes |
2,714 | (10,200 | ) | (e) | 12,914 | 13,888 | (30,311 | ) | (e) | 44,199 | ||||||||||||||||||||
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| Net income |
$ | 33,126 | $ | (10,114 | ) | $ | 43,240 | $ | 68,409 | $ | (64,159 | ) | $ | 132,568 | ||||||||||||||||
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| Basic net income per share |
$ | 0.19 | $ | (0.06 | ) | $ | 0.25 | $ | 0.40 | $ | (0.38 | ) | $ | 0.78 | ||||||||||||||||
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| Diluted net income per share |
$ | 0.19 | $ | (0.06 | ) | $ | 0.24 | $ | 0.39 | $ | (0.36 | ) | $ | 0.75 | ||||||||||||||||
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| Weighted average shares outstanding for basic net income per share |
172,378 | 172,378 | 170,662 | 170,662 | ||||||||||||||||||||||||||
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| Weighted average shares outstanding for diluted net income per share |
178,296 | 178,296 | 176,370 | 176,370 | ||||||||||||||||||||||||||
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| (a) | For the three months ended December 31, 2010, the excluded amount includes $3,351 related to the amortization of purchased intangibles for core and existing technologies, $620 for stock-based compensation expense recorded during the period and $121 related to the effect of stock-based compensation on warranty expense rates. For the twelve months ended December 31, 2010, the excluded amount includes $13,347 related to the amortization of purchased intangibles for core and existing technologies, $2,588 for stock-based compensation expense recorded during the period and $467 related to the effect of stock-based compensation on warranty expense rates. |
| (b) | Excluded amount represents stock-based compensation expense recorded during the period. |
| (c) | For the three months ended December 31, 2010, the excluded amount includes $3,789 for stock-based compensation expense recorded during the period and $129 for costs associated with the CEO transition in May 2010. For the twelve months ended December 31, 2010, the excluded amount includes $12,797 for stock-based compensation expense recorded during the period and $4,134 for severance, legal and other costs associated with the CEO transition in May 2010. |
| (d) | For the twelve months ended December 31, 2010, the excluded amount represents the loss recognized during the period on preferred securities considered to be other than temporarily impaired, net of any subsequent realized gains. |
| (e) | For the three and twelve months ended December 31, 2010, the excluded amount represents the tax impact on expenses which are excluded in items (a)-(d) above, as well as $8,008 related to a one-time provision true-up during the quarter. |
POLYCOM, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| December 31, 2011 |
December 31, 2010 |
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| ASSETS |
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| Current assets |
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| Cash and cash equivalents |
$ | 375,441 | $ | 324,188 | ||||
| Short-term investments |
159,426 | 170,154 | ||||||
| Trade receivables, net |
219,557 | 154,507 | ||||||
| Inventories |
107,613 | 113,994 | ||||||
| Deferred taxes |
40,153 | 32,357 | ||||||
| Prepaid expenses and other current assets |
51,375 | 41,884 | ||||||
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| Total current assets |
953,565 | 837,084 | ||||||
| Property and equipment, net |
130,047 | 110,321 | ||||||
| Long-term investments |
56,772 | 41,316 | ||||||
| Goodwill and purchased intangibles |
663,070 | 519,685 | ||||||
| Deferred taxes |
20,930 | 18,388 | ||||||
| Other assets |
20,421 | 20,611 | ||||||
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| Total assets |
$ | 1,844,805 | $ | 1,547,405 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities |
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| Accounts payable |
$ | 113,922 | $ | 90,890 | ||||
| Accrued payroll and related liabilities |
40,650 | 35,222 | ||||||
| Deferred revenue |
143,091 | 104,919 | ||||||
| Other accrued liabilities |
61,502 | 54,651 | ||||||
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| Total current liabilities |
359,165 | 285,682 | ||||||
| Non-current liabilities |
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| Deferred revenue |
83,143 | 55,292 | ||||||
| Taxes payable |
16,845 | 16,690 | ||||||
| Deferred taxes |
2,274 | 2,057 | ||||||
| Other non-current liabilities |
13,262 | 12,714 | ||||||
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| Total liabilities |
474,689 | 372,435 | ||||||
| Stockholders’ equity |
1,370,116 | 1,174,970 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 1,844,805 | $ | 1,547,405 | ||||
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POLYCOM, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2011 |
December 31, 2010 |
December 31, 2011 |
December 31, 2010 |
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| Revenues: |
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| Product revenues |
$ | 318,425 | $ | 282,607 | $ | 1,207,787 | $ | 1,010,955 | ||||||||
| Service revenues |
88,582 | 57,024 | 288,011 | 207,534 | ||||||||||||
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| Total revenues |
407,007 | 339,631 | 1,495,798 | 1,218,489 | ||||||||||||
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| Cost of revenues: |
||||||||||||||||
| Cost of product revenues |
128,712 | 109,856 | 481,634 | 401,319 | ||||||||||||
| Cost of service revenues |
34,268 | 26,830 | 116,808 | 101,220 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of revenues |
162,980 | 136,686 | 598,442 | 502,539 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
244,027 | 202,945 | 897,356 | 715,950 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating expenses: |
||||||||||||||||
| Sales and marketing |
114,897 | 104,717 | 435,614 | 387,208 | ||||||||||||
| Research and development |
53,951 | 40,568 | 201,067 | 148,991 | ||||||||||||
| General and administrative |
20,908 | 19,034 | 82,901 | 74,661 | ||||||||||||
| Amortization of purchased intangibles |
3,738 | 1,380 | 9,831 | 5,647 | ||||||||||||
| Restructuring costs |
4,657 | 1,565 | 9,396 | 8,139 | ||||||||||||
| Acquisition-related expenses |
1,764 | — | 9,688 | — | ||||||||||||
| Litigation reserves and payments |
— | — | — | 1,235 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
199,915 | 167,264 | 748,497 | 625,881 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
44,112 | 35,681 | 148,859 | 90,069 | ||||||||||||
| Other income (expense), net |
1,666 | 159 | (1,639 | ) | (7,772 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before provision for income taxes |
45,778 | 35,840 | 147,220 | 82,297 | ||||||||||||
| Provision for (benefit from) income taxes |
(3,795 | ) | 2,714 | 11,406 | 13,888 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 49,573 | $ | 33,126 | $ | 135,814 | $ | 68,409 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic net income per share |
$ | 0.28 | $ | 0.19 | $ | 0.77 | $ | 0.40 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted net income per share |
$ | 0.28 | $ | 0.19 | $ | 0.75 | $ | 0.39 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for basic net income per share |
176,729 | 172,378 | 176,426 | 170,662 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average shares outstanding for diluted net income per share |
179,331 | 178,296 | 181,195 | 176,370 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
POLYCOM, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Twelve Months Ended | ||||||||
| December 31, 2011 |
December 31, 2010 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 135,814 | $ | 68,409 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
52,564 | 41,440 | ||||||
| Amortization of purchased intangibles |
21,742 | 18,994 | ||||||
| Provision for excess and obsolete inventories |
8,567 | 5,712 | ||||||
| Non-cash stock based compensation |
65,262 | 56,177 | ||||||
| Impairment of private company investments |
79 | — | ||||||
| Excess tax benefits from stock-based compensation |
(13,430 | ) | (11,618 | ) | ||||
| Write down of investments other than temporarily impaired |
— | 6,530 | ||||||
| Loss on disposals of property and equipment |
1,537 | 143 | ||||||
| Changes in assets and liabilities, net of the effect of acquisitions: |
||||||||
| Trade receivables |
(63,009 | ) | (21,694 | ) | ||||
| Inventories |
2,545 | (42,843 | ) | |||||
| Deferred taxes |
(12,446 | ) | (3,537 | ) | ||||
| Prepaid expenses and other assets |
(3,190 | ) | (29,537 | ) | ||||
| Accounts payable |
22,816 | 3,657 | ||||||
| Taxes payable |
13,496 | 2,770 | ||||||
| Other accrued liabilities |
67,298 | 48,797 | ||||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
299,645 | 143,400 | ||||||
|
|
|
|
|
|||||
| Cash flows from investing activities: |
||||||||
| Purchases of property and equipment |
(69,279 | ) | (69,331 | ) | ||||
| Purchases of investments |
(372,567 | ) | (374,946 | ) | ||||
| Proceeds from sale of investments |
41,461 | 102,079 | ||||||
| Proceeds from maturities of investments |
326,332 | 199,622 | ||||||
| Net cash paid in purchase acquisitions |
(163,630 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(237,683 | ) | (142,576 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of common stock under employee option and stock purchase plans |
40,798 | 64,854 | ||||||
| Repurchase of common stock |
(64,937 | ) | (84,206 | ) | ||||
| Excess tax benefits from stock-based compensation |
13,430 | 11,618 | ||||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(10,709 | ) | (7,734 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in cash and cash equivalents |
51,253 | (6,910 | ) | |||||
| Cash and cash equivalents, beginning of period |
324,188 | 331,098 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 375,441 | $ | 324,188 | ||||
|
|
|
|
|
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