Exhibit 99.1
FOR IMMEDIATE RELEASE | JULY 27, 2004 |
Investor Relations Contact: | Media Relations Contact: | ||
Diana Matley | Kevin Brett | ||
408-433-4365 | 408-433-7150 | ||
diana@lsil.com | kbrett@lsil.com |
CC04-87
LSI LOGIC REPORTS Q2 2004 FINANCIAL RESULTS
PROVIDES Q3 BUSINESS OUTLOOK
Second Quarter News Release Summary
n Revenues of $448 million, 10 percent increase over Q2 2003.
n GAAP* net income of 2 cents per diluted share, consistent with previous guidance.
n Net income, excluding special items**, of 7 cents per diluted share, consistent with previous guidance.
n Gross margin improvement to 46.6 percent.
Third Quarter Business Outlook
(Excludes effect of potential storage systems IPO)
n Projected revenue range of $435 million to $465 million.
n GAAP* range of breakeven to a net loss of 3 cents per diluted share.
n Net income, excluding special items**, in the range of 3-6 cents per diluted share.
* Generally Accepted Accounting Principles
** Acquisition-related amortization, restructuring and other special items.
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LSI Logic Reports Q2 2004 Financial Results July 27, 2004 | Page 2 of 4 |
LSI LOGIC Q2 REVENUES GROW 10 PERCENT YEAR-OVER-YEAR
GROSS MARGIN EXPANDS TO 46.6 PERCENT
Milpitas, California –LSI Logic Corporation (NYSE: LSI) today reported 2004 second quarter revenues of $448 million, an increase of 10 percent compared to the $407 million reported in the second quarter of 2003 and a 1 percent sequential decrease compared to the $452 million reported in the first quarter of 2004.
Cash and short-term investments totaled $847 million at the end of the second quarter of 2004. The company generated positive operating cash flow for the ninth consecutive quarter.
Second quarter 2004 GAAP* net income was $7 million or 2 cents per diluted share compared to a GAAP net loss of $162 million or 43 cents per diluted share in the 2003 second quarter. First quarter 2004 GAAP net income was $9 million or 2 cents per diluted share.
Second quarter 2004 net income, excluding special items**, was $28 million or 7 cents per diluted share compared to a net loss, excluding special items, of $6 million or 2 cents per diluted share in the second quarter of 2003. Excluding special items, first quarter 2004 net income was $25 million or 6 cents per diluted share.
“Late in the second quarter, we saw some slowing of the overall business that is carrying over into the third quarter,” said Wilfred Corrigan, LSI Logic chairman and chief executive officer. “However we expect the second half of the year as a whole to be stronger than the first half of the year, driven by continued growth in consumer electronics and an improvement in IT orders from our customer base later in the year.”
“LSI Logic began production shipments of RapidChip™ Platform ASICs in the second quarter, and we expect a steady growth ramp in the second half of this year leading to volume production in 2005,” said Joe Zelayeta, LSI Logic executive vice president of ASIC Technology and Methodology. “We are generating repeat orders from existing and new customers based upon the high-performance, low-design cost and quick time-to-revenue advantages of LSI Logic’s Platform ASICs.”
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LSI Logic Reports Q2 2004 Financial Results July 27, 2004 | Page 3 of 4 |
“LSI Logic’s year-over-year improvements in revenues, gross margin and profitability continued in the second quarter,” said Bryon Look, LSI Logic chief financial officer. “During the past 12 months, we have generated $124 million in positive operating cash flow, eliminated all short-term debt and strengthened our balance sheet.”
LSI Logic Third Quarter Business Outlook
(Excludes effect of potential storage systems IPO)
GAAP* | Special Items** | Excluding Special Items | ||||
Revenue | $435 million to $465 million | $435 million to $465 million | ||||
Gross Margin | 44-46 percent | 44-46 percent | ||||
Operating Expenses | $198 to $202 million | Approximately $25 million | $173 to $177 million | |||
Net Other Income (Exp.) | $(2) to $(3) million | $(2) to $(3) million | ||||
Tax Provision | $6 million | $6 million | ||||
Earnings/Loss Per Share | ($0.03) to $0.00 | Approximately $0.06 | $0.03 to $0.06 | |||
Diluted Share Count | 393 million | 393 million |
Capital spending is projected to be around $25 million in the third quarter, and approximately $100 million in 2004.
Third quarter depreciation and software amortization is expected to be approximately $25 million.
* Generally Accepted Accounting Principles
** Acquisition-related amortization, restructuring and other special items.
NOTE: The company’s financial guidance will be limited to the comments made on today’s public conference call and contained in the Third Quarter Business Outlook section of this news release.
LSI Logic Conference Call Information
LSI Logic will hold a conference call today at 1:30 p.m. PDT to discuss second quarter financial results. The number is 1-303-262-2130. Internet users can access the conference call by visiting http://www.lsilogic.com/investors. A replay of the call will be available today at approximately 4:30 p.m. PDT and will be available for 48 hours. The replay access numbers are 1-800-405-2236 within the U.S. and 1-303-590-3000 for all other locations, passcode 575336#.
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LSI Logic Reports Q2 2004 Financial Results July 27, 2004 | Page 4 of 4 |
Safe Harbor for Forward Looking Statements:This news release contains forward-looking statements, which include the following: projected revenues of $435 million to $465 million in the third quarter of 2004; projected GAAP range of break-even to a net loss of 3 cents per diluted share in the third quarter of 2004; projected net income, excluding special items, in the range of 3-6 cents per diluted share in the third quarter of 2004; the company’s expectation that the second half of the year will be stronger than the first, driven by continued growth in consumer electronics and an improvement in IT spending by the company’s customer base later in the year; the company’s expectation of a steady growth ramp for RapidChip™ Platform ASICs in the second half of 2004, leading to volume production in 2005; projected capital spending of approximately $25 million in the third quarter of 2004 and approximately $100 million in 2004; and expected third quarter depreciation and software amortization of approximately $25 million. These forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause LSI Logic’s actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: fluctuations in the timing and volumes of customer demand; the rate of depletion of customer inventory buildup and the company’s achievement of revenue objectives; ability to meet financial targets; the company’s ability to develop new products; the timing and the success of new product introductions; and the continued availability of appropriate levels of manufacturing capacity. For additional information, readers are referred to the documents filed by LSI Logic with the SEC, and specifically the risk factors set forth in the company’s most recent reports on Form 10-K, 10-Q and 8-K.
About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. http://www.lsilogic.com
# # #
Editor’s Notes:
1. | All LSI Logic news releases (financial, acquisitions, manufacturing, products, technology etc.) are issued exclusively by PR Newswire and are immediately thereafter posted on the company’s external website, http://www.lsilogic.com. | |
2. | The LSI Logic logo design is a registered trademark of LSI Logic Corporation. | |
3. | All other brand or product names may be trademarks or registered trademarks of their respective companies. |
LSI LOGIC CORPORATION
Consolidated Condensed Statements of Operations Excluding Special Items
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues | $ | 447,897 | $ | 407,213 | $ | 900,254 | $ | 779,998 | ||||||||
Cost of revenues | 239,081 | 238,469 | 490,006 | 486,537 | ||||||||||||
Gross profit | 208,816 | 168,744 | 410,248 | 293,461 | ||||||||||||
Research and development | 110,098 | 111,326 | 219,039 | 226,453 | ||||||||||||
Selling, general and administrative | 62,750 | 56,870 | 123,908 | 114,499 | ||||||||||||
Income/(loss) from operations | 35,968 | 548 | 67,301 | (47,491 | ) | |||||||||||
Interest expense | (6,067 | ) | (7,314 | ) | (11,979 | ) | (16,145 | ) | ||||||||
Interest income and other, net | 3,674 | 6,469 | 9,488 | 18,506 | ||||||||||||
Income/(loss) before income taxes | 33,575 | (297 | ) | 64,810 | (45,130 | ) | ||||||||||
Provision for income taxes | 6,000 | 6,000 | 12,000 | 12,000 | ||||||||||||
Net income/(loss) excluding special items | $ | 27,575 | $ | (6,297 | ) | $ | 52,810 | $ | (57,130 | ) | ||||||
Income/(loss) per share excluding special items: | ||||||||||||||||
Basic | $ | 0.07 | $ | (0.02 | ) | $ | 0.14 | $ | (0.15 | ) | ||||||
Diluted | $ | 0.07 | $ | (0.02 | ) | $ | 0.14 | $ | (0.15 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||
Basic | 383,522 | 376,619 | 382,571 | 375,745 | ||||||||||||
Diluted | 388,586 | 376,619 | 389,102 | 375,745 | ||||||||||||
Statements of operations excluding special items are intended to present the Company’s operating results, excluding special items described below, for the periods presented.
During the three and six month periods ended June 30, 2004, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, restructuring of operations and other items, net, and other special items. The other special items consisted of gains on certain equity securities, offset in part by fees related to the initial public offering and our separation from Engenio.
During the three and six month periods ended June 30, 2003, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, restructuring of operations and other items, net, and other special items. The other special items consisted of losses associated with repurchases of a portion of the Company’s Convertible Subordinated Notes, write downs of certain equity securities due to impairment, offset in part by gains on miscellaneous asset sales.
For the three and six month periods ended June 30, 2004, the statements excluding special items are prepared using the Company’s calculated tax expense of $6,000 and $12,000, respectively when excluding special items. For the three and six month periods ended June 30, 2003, the statements excluding special items are prepared using the Company’s calculated tax expense of $6,000 and $12,000, respectively when excluding special items.
For the three and six month periods ended June 30, 2004, 5,064 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted earnings per share excluding special items. In computing diluted loss per share excluding special items for the three and six month periods ended June 30, 2003, common stock equivalents were excluded from the computation of diluted loss per share as a result of their antidilutive effect.
A reconciliation from net income/(loss) excluding special items to the reported results is presented on the following page.
The format presented above is not intended to be in accordance with Generally Accepted Accounting Principles.
LSI LOGIC CORPORATION
Reconciliation of Net Income/(Loss) Excluding Special Items to GAAP Results
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net income/(loss) excluding special items | $ | 27,575 | $ | (6,297 | ) | $ | 52,810 | $ | (57,130 | ) | ||||||
Special items: | ||||||||||||||||
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation | (21,401 | ) | (28,151 | ) | (41,501 | ) | (58,819 | ) | ||||||||
Restructuring of operations and other items, net | (3,029 | ) | (124,527 | ) | (2,431 | ) | (160,193 | ) | ||||||||
Other special items | 4,097 | (3,109 | ) | 7,449 | (8,367 | ) | ||||||||||
Total special items | (20,333 | ) | (155,787 | ) | (36,483 | ) | (227,379 | ) | ||||||||
Net Income/(loss) | $ | 7,242 | $ | (162,084 | ) | $ | 16,327 | $ | (284,509 | ) | ||||||
Basic income/(loss) per share: | ||||||||||||||||
Net income/(loss) excluding special items | $ | 0.07 | $ | (0.02 | ) | $ | 0.14 | $ | (0.15 | ) | ||||||
Special items ** | (0.05 | ) | (0.41 | ) | (0.10 | ) | (0.61 | ) | ||||||||
Net Income/(loss) | $ | 0.02 | $ | (0.43 | ) | $ | 0.04 | $ | (0.76 | ) | ||||||
Diluted income/(loss) per share*: | ||||||||||||||||
Net income/(loss) excluding special items | $ | 0.07 | $ | (0.02 | ) | $ | 0.14 | $ | (0.15 | ) | ||||||
Special items ** | (0.05 | ) | (0.41 | ) | (0.10 | ) | (0.61 | ) | ||||||||
Net Income/(loss) | $ | 0.02 | $ | (0.43 | ) | $ | 0.04 | $ | (0.76 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||
Basic | 383,522 | 376,619 | 382,571 | 375,745 | ||||||||||||
Diluted | 388,586 | 376,619 | 389,102 | 375,745 | ||||||||||||
* | For the three and six month periods ended June 30, 2004, 5,064 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted earnings per share. In computing diluted loss per share for the three and six month periods ended June 30, 2003, common stock equivalents were excluded from the computation of diluted loss per share as a result of their antidilutive effect. | |
** | This line item includes rounding adjustments. |
LSI LOGIC CORPORATION
Consolidated Condensed Statements of Operations (GAAP)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues | $ | 447,897 | $ | 407,213 | $ | 900,254 | $ | 779,998 | ||||||||
Cost of revenues | 239,081 | 238,469 | 490,006 | 486,537 | ||||||||||||
Gross profit | 208,816 | 168,744 | 410,248 | 293,461 | ||||||||||||
Research and development | 110,098 | 111,326 | 219,039 | 226,453 | ||||||||||||
Selling, general and administrative | 63,757 | 56,870 | 124,915 | 114,499 | ||||||||||||
Restructuring of operations and other items, net | 3,029 | 124,527 | 2,431 | 160,193 | ||||||||||||
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation * | 21,401 | 28,151 | 41,501 | 58,819 | ||||||||||||
Income/(loss) from operations | 10,531 | (152,130 | ) | 22,362 | (266,503 | ) | ||||||||||
Interest expense | (6,067 | ) | (7,314 | ) | (11,979 | ) | (16,145 | ) | ||||||||
Interest income and other, net | 8,778 | 3,360 | 17,944 | 10,139 | ||||||||||||
Income/(loss) before income taxes | 13,242 | (156,084 | ) | 28,327 | (272,509 | ) | ||||||||||
Provision for income taxes | 6,000 | 6,000 | 12,000 | 12,000 | ||||||||||||
Net Income/(loss) | $ | 7,242 | $ | (162,084 | ) | $ | 16,327 | $ | (284,509 | ) | ||||||
Income/(loss) per share: | ||||||||||||||||
Basic | $ | 0.02 | $ | (0.43 | ) | $ | 0.04 | $ | (0.76 | ) | ||||||
Diluted ** | $ | 0.02 | $ | (0.43 | ) | $ | 0.04 | $ | (0.76 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||
Basic | 383,522 | 376,619 | 382,571 | 375,745 | ||||||||||||
Diluted | 388,586 | 376,619 | 389,102 | 375,745 | ||||||||||||
* | The amortization of acquisition related items including intangibles and non-cash deferred stock compensation for the three month period ended June 30, 2004 are comprised of the following items: |
Amortization of intangibles | $ | 19,398 | ||
Amortization of non-cash deferred stock compensation | 2,003 | |||
$ | 21,401 | |||
** | For the three and six month periods ended June 30, 2004, 5,064 and 6,531 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted earnings per share. In computing diluted loss per share for the three and six month periods ended June 30, 2003, common stock equivalents were excluded from the computation of diluted loss per share as a result of their antidilutive effect. |
LSI LOGIC CORPORATION
Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)
June 30, | December 31, | |||||||
Assets | 2004 | 2003 | ||||||
Current assets: | ||||||||
Cash and short-term investments | $ | 847.4 | $ | 813.7 | ||||
Accounts receivable, net | 289.0 | 231.2 | ||||||
Inventories | 209.9 | 198.5 | ||||||
Prepaid expenses and other current assets | 132.8 | 146.6 | ||||||
Total current assets | 1,479.1 | 1,390.0 | ||||||
Property and equipment, net | 451.5 | 481.5 | ||||||
Goodwill and other intangibles | 1,125.1 | 1,129.7 | ||||||
Other assets | 401.0 | 446.7 | ||||||
Total assets | $ | 3,456.7 | $ | 3,447.9 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Other current liabilities | $ | 395.9 | $ | 390.8 | ||||
Current portion of long-term debt, capital lease obligations and short-term borrowings | 0.4 | 0.4 | ||||||
Total current liabilities | 396.3 | 391.2 | ||||||
Long-term debt and capital lease obligations | 858.2 | 865.6 | ||||||
Other long-term liabilities | 135.6 | 141.1 | ||||||
Total liabilities | 1,390.1 | 1,397.9 | ||||||
Minority interest in consolidated subsidiaries | 0.8 | 7.5 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 2,962.2 | 2,953.8 | ||||||
Deferred stock compensation | (11.7 | ) | (24.8 | ) | ||||
Accumulated deficit | (904.4 | ) | (920.7 | ) | ||||
Accumulated other comprehensive income | 19.7 | 34.2 | ||||||
Total stockholders’ equity | 2,065.8 | 2,042.5 | ||||||
Total liabilities and stockholders’ equity | $ | 3,456.7 | $ | 3,447.9 | ||||
LSI LOGIC CORPORATION
Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Operating Activities: | ||||||||||||||||
Net income/(loss) | $ | 7,242 | $ | (162,084 | ) | $ | 16,327 | $ | (284,509 | ) | ||||||
Adjustments: | ||||||||||||||||
Depreciation & amortization * | 46,325 | 65,053 | 92,441 | 152,111 | ||||||||||||
Amortization of non-cash deferred stock compensation | 2,003 | 8,884 | 3,829 | 19,427 | ||||||||||||
Non-cash restructuring and other items | 4,156 | 97,569 | 6,385 | 127,323 | ||||||||||||
Gain on sale and exchange of equity securities, loss on write down | (5,104 | ) | 2,068 | (8,104 | ) | 9,074 | ||||||||||
Loss on repurchase of Convertible Subordinated Notes | — | 2,029 | — | 2,029 | ||||||||||||
Gain on sale of property and equipment | (836 | ) | (857 | ) | (3,937 | ) | (2,560 | ) | ||||||||
Changes in deferred tax assets and liabilities | 105 | 447 | 625 | 37 | ||||||||||||
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: | ||||||||||||||||
Accounts receivable | (41,612 | ) | (15,660 | ) | (56,980 | ) | 8,500 | |||||||||
Inventories | (5,511 | ) | 1,826 | (11,701 | ) | (10,040 | ) | |||||||||
Prepaid expenses and other assets | (18,306 | ) | 52,776 | (5,777 | ) | 52,440 | ||||||||||
Accounts payable | 23,024 | 13,134 | 10,263 | 12,028 | ||||||||||||
Accrued and other liabilities | 16,600 | 17,000 | (5,178 | ) | 18,205 | |||||||||||
Net cash provided by operating activities | 28,086 | 82,185 | 38,193 | 104,065 | ||||||||||||
Investing activities: | ||||||||||||||||
Purchases of debt securities available-for-sale | (225,316 | ) | (552,298 | ) | (454,756 | ) | (1,409,529 | ) | ||||||||
Maturities and sales of debt securities available-for-sale | 150,418 | 570,318 | 339,458 | 1,455,927 | ||||||||||||
Purchases of equity securities | — | — | (2,250 | ) | — | |||||||||||
Proceeds from sales of equity securities | 10,518 | — | 10,518 | — | ||||||||||||
Purchases of property and equipment | (13,661 | ) | (15,908 | ) | (25,218 | ) | (31,518 | ) | ||||||||
Proceeds from sale of property and equipment | 1,822 | 7,322 | 5,836 | 11,855 | ||||||||||||
Proceeds from the sale leaseback of equipment | — | — | — | 160,000 | ||||||||||||
Increase in non-current assets and deposits | (17 | ) | — | (40 | ) | (389,393 | ) | |||||||||
Decrease in non-current assets and deposits | 11,880 | 4,642 | 39,633 | 243,625 | ||||||||||||
Acquisition of companies, net of cash acquired | (27,248 | ) | — | (32,025 | ) | — | ||||||||||
Decrease in a payable for an acquisition of a company | (17,592 | ) | — | — | — | |||||||||||
Net cash (used in)/provided by investing activities | (109,196 | ) | 14,076 | (118,844 | ) | 40,967 | ||||||||||
Financing activities: | ||||||||||||||||
Proceeds from borrowings | — | 350,000 | — | 350,000 | ||||||||||||
Repurchase of Convertible Subordinated Notes | — | (288,587 | ) | — | (288,587 | ) | ||||||||||
Cash paid for call spread options | — | (28,000 | ) | — | (28,000 | ) | ||||||||||
Debt issuance costs | — | (10,566 | ) | — | (10,566 | ) | ||||||||||
Repayment of debt obligations | (94 | ) | (86 | ) | (216 | ) | (174 | ) | ||||||||
Purchase of minority interest in subsidiary | (6,394 | ) | — | (7,453 | ) | — | ||||||||||
Issuance of common stock | 14,262 | 15,648 | 17,810 | 15,890 | ||||||||||||
Net cash provided by financing activities | 7,774 | 38,409 | 10,141 | 38,563 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (1,675 | ) | 2,966 | (769 | ) | 3,722 | ||||||||||
(Decrease)/increase in cash and cash equivalents | (75,011 | ) | 137,636 | (71,279 | ) | 187,317 | ||||||||||
Cash and cash equivalents at beginning of period | 273,414 | 498,528 | 269,682 | 448,847 | ||||||||||||
Cash and cash equivalents at end of period | $ | 198,403 | $ | 636,164 | $ | 198,403 | $ | 636,164 | ||||||||
* | Depreciation of fixed assets, amortization of intangible assets, software, capitalized intellectual property, debt issuance costs and deferred gains on cancelled interest rate swaps. |
LSI LOGIC CORPORATION
Selected Financial Information (GAAP)
(In millions, except where noted)
(Unaudited)
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
2004 | 2004 | 2003 | ||||||||||
Semiconductor revenues | $ | 335.6 | $ | 336.9 | $ | 306.2 | ||||||
Storage Systems revenues | $ | 112.3 | $ | 115.5 | $ | 101.0 | ||||||
Total revenues | $ | 447.9 | $ | 452.4 | $ | 407.2 | ||||||
Percentage change in revenues-qtr./qtr. ( a ) | -1.0 | % | -2.0 | % | 9.2 | % | ||||||
Percentage change in revenues-yr./yr. ( b ) | 10.0 | % | 21.0 | % | -7.0 | % | ||||||
Days sales outstanding | 58 | 49 | 53 | |||||||||
Days of inventory | 79 | 74 | 78 | |||||||||
Current ratio | 3.7 | 3.6 | 2.9 | |||||||||
Quick ratio | 2.9 | 2.8 | 2.2 | |||||||||
R&D as a percentage of revenues | 24.6 | % | 24.1 | % | 27.3 | % | ||||||
SG&A as a percentage of revenues | 14.2 | % | 13.5 | % | 14.0 | % | ||||||
Gross margin as a percentage of revenues | 46.6 | % | 44.5 | % | 41.4 | % | ||||||
Employees ( c ) | 4,846 | 4,797 | 5,044 | |||||||||
Revenues per employee (in thousands) ( d ) | $ | 369.7 | $ | 377.2 | $ | 322.9 | ||||||
Diluted shares (in thousands) | 388,586 | 389,882 | 376,619 | |||||||||
Selected Cash Flow information | ||||||||||||
Purchases of property and equipment | $ | 12.5 | $ | 9.7 | $ | 13.0 | ||||||
Depreciation / amortization ( e ) | $ | 24.8 | $ | 26.0 | $ | 41.8 |
( a ) | Represents sequential quarter growth in revenues. | |
( b ) | Represents growth in revenues in the quarter presented as compared to the same quarter of the previous year. | |
( c ) | Actual number of employees at the end of each period presented. | |
( d ) | Revenue per employee is calculated by annualizing revenue for each quarter presented and dividing it by the number of employees. | |
( e ) | Represents depreciation of fixed assets and amortization of software. |