Exhibit 99.2
UNAUDITED PRO FORMA FINANCIAL DATA
On July 8, 2009, Finisar Corporation (“Finisar”) entered into an Asset Purchase Agreement with JDS Uniphase Corporation (“JDSU”), pursuant to which Finisar agreed to sell to JDSU all of the assets used exclusively in its Network Tools business (other than accounts receivable) and JDSU agreed to assume certain related liabilities of the Network Tools business for a cash purchase price of approximately $40.6 million (the “Sale Transaction”). The Sale Transaction closed on July 15, 2009. The unaudited pro forma condensed balance sheet as of April 30, 2009 and unaudited pro forma condensed statement of income for the twelve months ended April 30, 2009 set forth below give effect to the Sale Transaction, as if such transaction had been consummated on the date or at the beginning of the period indicated.
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
Sale of Network | |||||||||||||
Tools Division | |||||||||||||
Historical | Adjustments | Pro Forma | |||||||||||
(audited) | |||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 37,129 | $ | 40,600 | (1) | $ | 77,729 | ||||||
Short-term available-for-sale investments | 92 | — | 92 | ||||||||||
Accounts receivable, net | 81,820 | — | 81,820 | ||||||||||
Accounts receivable, other | 10,033 | — | 10,033 | ||||||||||
Inventories | 112,300 | (4,536 | )(2) | 107,764 | |||||||||
Prepaid expenses | 7,122 | — | 7,122 | ||||||||||
Total current assets | 248,496 | 36,064 | 284,560 | ||||||||||
Property, plant and improvements, net | 84,040 | (1,391 | )(2) | 82,649 | |||||||||
Purchased technology, net | 16,663 | (204 | )(2) | 16,459 | |||||||||
Other intangible assets, net | 14,316 | (888 | )(2) | 13,428 | |||||||||
Minority investments | 14,289 | — | 14,289 | ||||||||||
Other assets | 2,897 | — | 2,897 | ||||||||||
Total assets | $ | 380,701 | $ | 33,581 | 414,282 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | $ | 48,421 | $ | — | $ | 48,421 | |||||||
Accrued compensation | 11,428 | (755 | )(2) | 10,673 | |||||||||
Other accrued liabilities | 30,713 | — | 30,713 | ||||||||||
Deferred revenue | 4,663 | (2,981 | )(2) | 1,682 | |||||||||
Current portion of long-term debt | 6,107 | — | 6,107 | ||||||||||
Non-cancelable purchase obligations | 2,965 | (673 | )(2) | 2,292 | |||||||||
Total current liabilities | 104,297 | (4,409 | ) | 99,888 | |||||||||
Long-term liabilities: | |||||||||||||
Convertible subordinated notes | 50,000 | — | 50,000 | ||||||||||
Convertible senior subordinated notes | 92,000 | — | 92,000 | ||||||||||
Long-term debt, net of current portion | 15,305 | — | 15,305 | ||||||||||
Other non-current liabilities | 3,161 | (650 | )(2) | 2,511 | |||||||||
Deferred income taxes | 1,149 | — | 1,149 | ||||||||||
Total long-term liabilities | 161,615 | (650 | ) | 160,965 | |||||||||
Stockholders’ equity: | |||||||||||||
Common stock | 477 | — | 477 | ||||||||||
Additional paid-in capital | 1,811,298 | — | 1,811,298 | ||||||||||
Accumulated other comprehensive income | 2,662 | — | 2,662 | ||||||||||
Accumulated deficit | (1,699,648 | ) | 38,640 | (3) | (1,661,008 | ) | |||||||
Total stockholders’ equity | 114,789 | 38,640 | 153,429 | ||||||||||
Total liabilities and stockholders’ equity | $ | 380,701 | $ | 33,581 | $ | 414,282 | |||||||
(1) | Gross proceeds from the sale of the Network Tools Division. | |
(2) | Assets and liabilities disposed of in the sale of the Network Tools Division. | |
(3) | Estimated gain on the sale of the Network Tools Division. |
UNAUDITED PRO FORMA CONDENSED STATEMENT OF INCOME
Sale of Network | ||||||||||||
Tools Division | ||||||||||||
Historical | Adjustments | Pro Forma | ||||||||||
(audited) | ||||||||||||
Revenues | ||||||||||||
Optical subsystems and components | $ | 497,058 | $ | — | $ | 497,058 | ||||||
Network test systems | 44,179 | (44,179 | )(1) | — | ||||||||
Total revenues | 541,237 | (44,179 | ) | 497,058 | ||||||||
Cost of revenues | 365,572 | (13,476 | )(1) | 352,096 | ||||||||
Impairment of acquired developed technology | 1,248 | — | 1,248 | |||||||||
Amortization of acquired developed technology | 6,039 | (1,132 | )(1) | 4,907 | ||||||||
Gross profit | 168,378 | (29,571 | )(1) | 138,807 | ||||||||
Gross margin | 31.1 | % | 66.9 | % | 27.9 | % | ||||||
Operating expenses: | ||||||||||||
Research and development | 92,057 | (11,921 | )(1) | 80,136 | ||||||||
Sales and marketing | 37,747 | (10,017 | )(1) | 27,730 | ||||||||
General and administrative | 40,761 | (4,942 | )(1) | 35,819 | ||||||||
Acquired in-process research and development | 10,500 | — | 10,500 | |||||||||
Amortization of purchased intangibles | 2,686 | (542 | )(1) | 2,144 | ||||||||
Impairment of goodwill and intangible assets | 238,507 | — | 238,507 | |||||||||
Total operating expenses | 422,258 | (27,422 | )(1) | 394,836 | ||||||||
Loss from operations | (253,880 | ) | (2,149 | )(1) | (256,029 | ) | ||||||
Interest income | 1,762 | — | 1,762 | |||||||||
Interest expense | (9,687 | ) | — | (9,687 | ) | |||||||
Gain on debt extinguishment | 3,838 | — | 3,838 | |||||||||
Other income (expense), net | (3,803 | ) | — | (3,803 | ) | |||||||
Loss before income taxes | (261,770 | ) | (2,149 | ) | (263,919 | ) | ||||||
Provision (benefit) for income taxes | (6,962 | ) | — | (6,962 | ) | |||||||
Net income (loss) | $ | (254,808 | ) | $ | (2,149 | )(1) | $ | (256,957 | ) | |||
Net loss per share — basic and diluted | $ | (0.61 | ) | $ | (0.61 | ) | ||||||
Shares used in computing net loss per share — basic and diluted | 420,456 | 420,456 |
(1) | Elimination of full year revenue, operating expenses and operating profit of the Network Tools Division assuming the sale had occurred at the beginning of the fiscal year. |