Exhibit 99.1
FOR IMMEDIATE RELEASE | JANUARY 25, 2006 | |||
Investor Relations Contact: | Media Relations Contact: | |||
Diana Matley | Tara Yingst | |||
408-433-4365 | 408-433-7139 | |||
diana.matley@lsi.com | tara.yingst@lsi.com | |||
CC06-03 |
LSI LOGIC REPORTS Q4 REVENUE INCREASE OF 21%
YEAR-OVER-YEAR
2005 REVENUES UP 13% OVER 2004
Fourth Quarter and Full Year 2005 News Release Summary
• Revenues of $506 million; up 5% sequentially | ||
• GAAP* net income of 9 cents per diluted share | ||
• Net income, excluding special items**, of 13 cents per diluted share | ||
• Gross margin of 43.5% | ||
• 2005 revenues of $1.92 billion; up 13% compared to $1.7 billion for 2004 | ||
• Net cash from operations grows 186% to $260 million for 2005 |
First Quarter 2006 Business Outlook
• Projected revenue of $465 million to $490 million | ||
• GAAP* net income range of 1 – 3 cents per diluted share | ||
• Net income, excluding special items**, in the range of 10 – 12 cents per diluted share |
*Generally Accepted Accounting Principles
**Acquisition-related amortization, restructuring and other special items.
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LSI Logic Reports Q4 and 2005 Financial Results January 25, 2006 | Page 2 of 4 |
STRONG DEMAND FOR STORAGE AND CONSUMER PRODUCTS DRIVES GROWTH
MILPITAS, CA –LSI Logic Corporation (NYSE: LSI) today reported fourth quarter 2005 revenues of $506 million, a sequential increase of 5% compared to the $482 million reported in the third quarter of 2005, and a 21% increase compared to the $420 million reported in the fourth quarter of 2004.
The company generated $63 million in cash from operations in the fourth quarter of 2005, representing the 15th consecutive quarter of positive operating cash flow. Net cash from operations nearly tripled to $260 million for 2005 compared to $91 million for 2004. Cash and short-term investments grew 15% to $939 million in 2005 from $815 in 2004.
Fourth quarter 2005 GAAP* net income was $38 million or 9 cents per diluted share, compared to third quarter GAAP net loss of $73 million or 19 cents per diluted share, which included a $91 million restructuring charge associated with the planned sale of the company’s Gresham, Oregon manufacturing facility. Fourth quarter 2004 GAAP net loss was $197 million or 51 cents per diluted share, which included a $178 million non-cash charge associated with the Gresham facility.
Fourth quarter 2005 net income, excluding special items**, was $51 million or 13 cents per diluted share compared to a net income, excluding special items, of $45 million or 11 cents per diluted share in the third quarter. Excluding special items, fourth quarter 2004 net income was $15 million or 4 cents per diluted share.
“A strong 2005 performance in our Storage and Consumer businesses was capped off by record fourth quarter and full year revenues for our Engenio Storage Group, fueled by the continuing demand for high-performance 4Gb/sec. Fibre Channel systems,” said Abhi Talwalkar, LSI president and chief executive officer. “Revenues from our storage semiconductors grew in the fourth quarter and we extended our lead in SAS (serial attached SCSI) by introducing a number of new products. Consumer revenues met our fourth quarter expectations and grew 34% for the full year 2005.
“Entering 2006, our strong position in enterprise storage and the industry-projected growth of consumer electronics products are expected to be the primary growth drivers for the company. We are well positioned to capitalize on these opportunities with our leadership technology.”
LSI recorded 2005 revenues of $1.92 billion, a 13% increase compared to $1.70 billion in 2004.
The company reported GAAP 2005 net loss of $6 million or 1 cent per diluted share, which includes $91 million in charges associated with the planned sale of the Gresham manufacturing facility. The 2004 GAAP net loss was $464 million or $1.21 per diluted
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LSI Logic Reports Q4 and 2005 Financial Results January 25, 2006 | Page 3 of 4 |
share, which included a $384 million non-cash charge associated with the impairment of the Gresham manufacturing facility.
Net income for 2005, excluding special items, grew to $166 million or 42 cents per diluted share compared to 2004 net income, excluding special items, of $43 million or 11 cents per diluted share.
LSI reduced its convertible debt to $624 million in 2005 through open market purchases, compared to convertible debt of $782 million in 2004 .
“During 2005, we grew revenues significantly, reduced operating expenses by $28 million compared to the previous year and nearly quadrupled net profit, excluding special items,” said Bryon Look, LSI chief financial officer. “Building on our balance sheet strength, our net cash to debt position increased to $315 million.”
LSI Logic First Quarter 2006 Business Outlook
GAAP* | Special Items** | Excluding Special** | |||||||||||||||
Items | |||||||||||||||||
Revenue | $465 million to $490 million | $465 million to $490 million | |||||||||||||||
Gross Margin | 42.5-43.5% | Approximately $2 million | 43-44% | ||||||||||||||
Operating Expenses | $187 million to $191 million | Approximately $33 million | $154 million to $158 million | ||||||||||||||
Net Other Income | $1 million | $1 million | |||||||||||||||
Tax Provision | $8 million | Approximately ($1 million) | $9 million | ||||||||||||||
Net Income Per Share | $0.01 to $0.03 | Approximately ($0.09)*** | $0.10 to $0.12 | ||||||||||||||
Diluted Share Count | 410 million | 410 million | |||||||||||||||
Capital spending is projected to be around $18 million in the first quarter and approximately $60 million in total for 2006.
First quarter depreciation and software amortization is expected to be approximately $12 million.
* Generally Accepted Accounting Principles
** Acquisition-related amortization, restructuring and other special items.
*** Includes approximately $15M in employee stock option expensing.
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LSI Logic Reports Q4 and 2005 Financial Results January 25, 2006 | Page 4 of 4 |
NOTE: The company’s financial guidance will be limited to the comments made on today’s public conference call and contained in the First Quarter 2006 Business Outlook section of this news release.
LSI Logic Conference Call Information
LSI Logic will hold a conference call today at 2 p.m. PST to discuss fourth quarter and 2005 financial results and the first quarter 2006 business outlook. The number is 1-303-262-2194. Internet users can access the conference call by visiting http://www.lsi.com/investors. A replay of the call will be available today at approximately 5 p.m. PST 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 11050744#.
LSI Logic will hold a conference call today at 2 p.m. PST to discuss fourth quarter and 2005 financial results and the first quarter 2006 business outlook. The number is 1-303-262-2194. Internet users can access the conference call by visiting http://www.lsi.com/investors. A replay of the call will be available today at approximately 5 p.m. PST 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 11050744#.
Safe Harbor for Forward Looking Statements:This news release contains forward-looking statements, which include the following: the expectation for enterprise storage and consumer electronics products to be the primary growth drivers for the company in 2006, the expectation to capitalize on enterprise storage and consumer products opportunities in 2006, projected revenues for the first quarter of 2006, projected GAAP net income for the first quarter of 2006, projected net income, excluding special items, for the first quarter of 2006, projected capital spending in the first quarter of 2006 and for the year and expected first quarter of 2006 depreciation and software amortization. Forward-looking statements also include projections of gross margins, operating expenses, net other income, tax provisions, earnings per share and diluted share count. 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, particularly for storage, the company’s inability to achieve revenue objectives, the company’s inability to meet financial targets and failure to execute on its financial plan, the company’s inability to generate positive operating cash flow or control operating expenses, the company’s inability to capitalize on enterprise storage and consumer products growth opportunities, the inability of the consumer electronics products to grow as projected by industry, and the unavailability 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. LSI Logic is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document.
About LSI Logic
LSI Logic Corporation is a leading provider of silicon-to-system solutions that are used at the core of products that create, move and store digital content. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Consumer, Communications and Storage markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available atwww.lsi.com.
LSI Logic Corporation is a leading provider of silicon-to-system solutions that are used at the core of products that create, move and store digital content. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Consumer, Communications and Storage markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available atwww.lsi.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.lsi.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)
Consolidated Condensed Statements of Operations Excluding Special Items
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Revenues | $ | 506,235 | $ | 481,716 | $ | 419,693 | $ | 1,919,250 | $ | 1,700,164 | ||||||||||
Cost of revenues | 286,032 | 271,511 | 246,132 | 1,086,814 | 964,556 | |||||||||||||||
Gross profit | 220,203 | 210,205 | 173,561 | 832,436 | 735,608 | |||||||||||||||
Research and development | 97,892 | 100,524 | 94,343 | 397,312 | 421,516 | |||||||||||||||
Selling, general and administrative | 59,579 | 58,342 | 55,123 | 235,933 | 239,962 | |||||||||||||||
Income from operations | 62,732 | 51,339 | 24,095 | 199,191 | 74,130 | |||||||||||||||
Interest expense | (6,195 | ) | (6,058 | ) | (7,342 | ) | (25,283 | ) | (25,320 | ) | ||||||||||
Interest income and other, net | 6,828 | 6,054 | 4,403 | 23,334 | 17,907 | |||||||||||||||
Income before income taxes | 63,365 | 51,335 | 21,156 | 197,242 | 66,717 | |||||||||||||||
Provision for income taxes | 12,155 | 6,250 | 6,000 | 30,905 | 24,000 | |||||||||||||||
Net income excluding special items | $ | 51,210 | $ | 45,085 | $ | 15,156 | $ | 166,337 | $ | 42,717 | ||||||||||
Income per share excluding special items: | ||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.12 | $ | 0.04 | $ | 0.43 | $ | 0.11 | ||||||||||
Diluted | $ | 0.13 | $ | 0.11 | $ | 0.04 | $ | 0.42 | $ | 0.11 | ||||||||||
Shares used in computing per share amounts: | ||||||||||||||||||||
Basic | 392,850 | 391,017 | 386,267 | 390,135 | 384,070 | |||||||||||||||
Diluted | 401,171 | 402,664 | 386,781 | 396,936 | 388,204 | |||||||||||||||
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 month period ended December 31, 2005, 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 the sale of certain equity securities offset in part by write-downs of certain equity securities due to impairment. The tax benefit is related to interest received on a refund for a pre-acquisition tax matter.
During the year ended December 31, 2005, the special items represented all the items mentioned above in addition to gains associated with the repurchase of a portion of the Company’s Convertible Subordinated Notes.
During the three month period ended September 30, 2005, 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 write-downs of certain equity securities due to impairment.
During the three month period ended December 31, 2004, the special items represented amortization of acquisition related items including intangibles and non-cash deferred stock compensation, and restructuring of operations and other items, net.
During the year ended December 31, 2004, the special items represented all the items mentioned above in addition to the following items: write-downs of certain equity securities due to impairment and fees related to our subsidiary Engenio’s initial public offering, which was postponed in August of 2004 due to market conditions. These charges were offset in part by gains on certain equity securities and gains associated with the repurchase of a portion of the Company’s Convertible Subordinated Notes.
For the three month periods ended December 31, 2005, September 30, 2005, and December 31, 2004, the statements excluding special items are prepared using the Company’s calculated tax expense of $12,155, $6,250 and $6,000, respectively when excluding special items. For the year ended December 31, 2005 and 2004, the statements excluding special items are prepared using the Company’s calculated tax expense of $30,905 and $ 24,000, respectively when excluding special items.
For the three month periods ended December 31, 2005, September 30, 2005 and December 31, 2004, 8,321, 11,647 and 514 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share excluding special items. For the years ended December 31, 2005 and 2004, 6,801 and 4,134 shares, respectively were considered dilutive common stock equivalents and included in the computation of diluted income per share excluding special items.
A reconciliation from net income 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)
Reconciliation of Net Income/(loss) Excluding Special Items to GAAP Results
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Net income excluding special items | $ | 51,210 | $ | 45,085 | $ | 15,156 | $ | 166,337 | $ | 42,717 | ||||||||||
Special items: | ||||||||||||||||||||
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation | (13,074 | ) | (17,006 | ) | (20,193 | ) | (67,933 | ) | (83,499 | ) | ||||||||||
Restructuring of operations and other items, net | (10,377 | ) | (99,986 | ) | (192,389 | ) | (119,052 | ) | (423,444 | ) | ||||||||||
Other special items | 5,666 | (1,487 | ) | — | 10,660 | 695 | ||||||||||||||
Tax benefit | 4,365 | — | — | 4,365 | — | |||||||||||||||
Total special items | (13,420 | ) | (118,479 | ) | (212,582 | ) | (171,960 | ) | (506,248 | ) | ||||||||||
Net income/(loss) | $ | 37,790 | $ | (73,394 | ) | $ | (197,426 | ) | $ | (5,623 | ) | $ | (463,531 | ) | ||||||
Basic income/(loss) per share: | ||||||||||||||||||||
Net income excluding special items | $ | 0.13 | $ | 0.12 | $ | 0.04 | $ | 0.43 | $ | 0.11 | ||||||||||
Special items ** | (0.03 | ) | (0.31 | ) | (0.55 | ) | (0.44 | ) | (1.32 | ) | ||||||||||
Net income/(loss) | $ | 0.10 | $ | (0.19 | ) | $ | (0.51 | ) | $ | (0.01 | ) | $ | (1.21 | ) | ||||||
Diluted income/(loss) per share*: | ||||||||||||||||||||
Net income excluding special items | $ | 0.13 | $ | 0.11 | $ | 0.04 | $ | 0.42 | $ | 0.11 | ||||||||||
Special items ** | (0.04 | ) | (0.30 | ) | (0.55 | ) | (0.43 | ) | (1.32 | ) | ||||||||||
Net income/(loss) | $ | 0.09 | $ | (0.19 | ) | $ | (0.51 | ) | $ | (0.01 | ) | $ | (1.21 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||||||
Basic | 392,850 | 391,017 | 386,267 | 390,135 | 384,070 | |||||||||||||||
Diluted | 401,171 | 391,017 | 386,267 | 390,135 | 384,070 | |||||||||||||||
* | For the three month period ended December 31, 2005, 8,321 shares were considered dilutive common stock equivalents and included in the computation of diluted income per share. For the twelve month period ended December 31, 2005, the three month period ended September 30, 2005 and the three and twelve month periods ended December 31, 2004, all 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)
Consolidated Condensed Statements of Operations (GAAP)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Revenues | $ | 506,235 | $ | 481,716 | $ | 419,693 | $ | 1,919,250 | $ | 1,700,164 | ||||||||||
Cost of revenues | 286,032 | 271,511 | 246,132 | 1,086,814 | 964,556 | |||||||||||||||
Gross profit | 220,203 | 210,205 | 173,561 | 832,436 | 735,608 | |||||||||||||||
Research and development | 97,892 | 100,524 | 94,343 | 397,312 | 421,516 | |||||||||||||||
Selling, general and administrative | 59,579 | 58,342 | 55,123 | 235,933 | 243,498 | |||||||||||||||
Restructuring of operations and other items, net | 10,377 | 99,986 | 192,389 | 119,052 | 423,444 | |||||||||||||||
Amortization of acquisition related items including intangibles and non-cash deferred stock compensation * | 13,074 | 17,006 | 20,193 | 67,933 | 83,499 | |||||||||||||||
Income/(loss) from operations | 39,281 | (65,653 | ) | (188,487 | ) | 12,206 | (436,349 | ) | ||||||||||||
Interest expense | (6,195 | ) | (6,058 | ) | (7,342 | ) | (25,283 | ) | (25,320 | ) | ||||||||||
Interest income and other, net | 12,494 | 4,567 | 4,403 | 33,994 | 22,138 | |||||||||||||||
Income/(loss) before income taxes | 45,580 | (67,144 | ) | (191,426 | ) | 20,917 | (439,531 | ) | ||||||||||||
Provision for income taxes ** | 7,790 | 6,250 | 6,000 | 26,540 | 24,000 | |||||||||||||||
Net income/(loss) | $ | 37,790 | $ | (73,394 | ) | $ | (197,426 | ) | $ | (5,623 | ) | $ | (463,531 | ) | ||||||
Income/(loss) per share: | ||||||||||||||||||||
Basic | $ | 0.10 | $ | (0.19 | ) | $ | (0.51 | ) | $ | (0.01 | ) | $ | (1.21 | ) | ||||||
Diluted *** | $ | 0.09 | $ | (0.19 | ) | $ | (0.51 | ) | $ | (0.01 | ) | $ | (1.21 | ) | ||||||
Shares used in computing per share amounts: | ||||||||||||||||||||
Basic | 392,850 | 391,017 | 386,267 | 390,135 | 384,070 | |||||||||||||||
Diluted | 401,171 | 391,017 | 386,267 | 390,135 | 384,070 | |||||||||||||||
* | The amortization of acquisition related items including intangibles and non-cash deferred stock compensation for the three month period ended December 31, 2005 are comprised of the following items: |
Amortization of intangibles | $ | 11.565 | ||
Amortization of non-cash deferred stock compensation | 1,509 | |||
$ | 13,074 | |||
** | The provision for income taxes for the three and twelve month periods ended December 31, 2005 includes a $5,354 charge related to the correction of certain income tax balances arising from the Company’s adoption of a new goodwill accounting standard in 2002. | |
*** | For the three month period ended December 31, 2005, 8,321 shares were considered dilutive common stock equivalents and included in the computation of diluted income per share. For the twelve month period ended December 31, 2005, the three month period ended September 30, 2005 and the three and twelve month periods ended December 31, 2004, all 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)
Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)
December 31, | September 30, | December 31, | ||||||||||
Assets | 2005 | 2005 | 2004 | |||||||||
Current assets: | ||||||||||||
Cash and short-term investments | $ | 938.9 | $ | 845.0 | $ | 814.6 | ||||||
Accounts receivable, net | 323.3 | 298.5 | 272.1 | |||||||||
Inventories | 194.8 | 189.1 | 218.9 | |||||||||
Prepaid expenses and other current assets | 163.1 | 151.8 | 59.7 | |||||||||
Total current assets | 1,620.1 | 1,484.4 | 1,365.3 | |||||||||
Property and equipment, net | 98.3 | 97.9 | 311.9 | |||||||||
Goodwill and other intangibles | 974.5 | 1,023.0 | 1,081.6 | |||||||||
Other assets | 103.2 | 113.2 | 115.2 | |||||||||
Total assets | $ | 2,796.1 | $ | 2,718.5 | $ | 2,874.0 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Current liabilities: | ||||||||||||
Other current liabilities | $ | 468.9 | $ | 429.6 | $ | 396.2 | ||||||
Current portion of long-term debt | 273.9 | — | 0.1 | |||||||||
Total current liabilities | 742.8 | 429.6 | 396.3 | |||||||||
Long-term debt | 350.0 | 624.8 | 781.9 | |||||||||
Tax related liabilities and other | 75.1 | 77.3 | 77.6 | |||||||||
Total liabilities | 1,167.9 | 1,131.7 | 1,255.8 | |||||||||
Minority interest in subsidiary | 0.2 | 0.2 | 0.3 | |||||||||
Stockholders’ equity: | ||||||||||||
Common stock | 3,014.1 | 3,001.1 | 2,973.4 | |||||||||
Deferred stock compensation | (14.1 | ) | (13.3 | ) | (8.9 | ) | ||||||
Accumulated deficit | (1,389.9 | ) | (1,427.7 | ) | (1,384.3 | ) | ||||||
Accumulated other comprehensive income | 17.9 | 26.5 | 37.7 | |||||||||
Total stockholders’ equity | 1,628.0 | 1,586.6 | 1,617.9 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,796.1 | $ | 2,718.5 | $ | 2,874.0 | ||||||
LSI LOGIC CORPORATION
Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)
Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2005 | 2005 | 2004 | 2005 | 2004 | ||||||||||||||||
Operating Activities: | ||||||||||||||||||||
Net income/(loss) | $ | 37,790 | $ | (73,394 | ) | $ | (197,426 | ) | $ | (5,623 | ) | $ | (463,531 | ) | ||||||
Adjustments: | ||||||||||||||||||||
Depreciation & amortization * | 25,701 | 38,175 | 40,199 | 146,169 | 176,606 | |||||||||||||||
Amortization of non-cash deferred stock compensation | 1,509 | 1,313 | 2,027 | 5,449 | 8,449 | |||||||||||||||
Non-cash restructuring and other items | 1,563 | 85,311 | 187,000 | 88,224 | 401,058 | |||||||||||||||
(Gain)/loss on write-down on sale and exchange of equity securities | (5,651 | ) | 1,487 | 200 | (6,475 | ) | (1,913 | ) | ||||||||||||
Gain on repurchase of Convertible Subordinated Notes | — | — | — | (4,123 | ) | (1,767 | ) | |||||||||||||
Loss/(gain) on sales of property and equipment | 118 | (88 | ) | (467 | ) | 27 | (6,348 | ) | ||||||||||||
Changes in deferred tax assets and liabilities | 14,108 | 58 | 4,657 | 14,220 | 4,895 | |||||||||||||||
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations: | ||||||||||||||||||||
Accounts receivable | (24,839 | ) | (13,615 | ) | (7,221 | ) | (51,307 | ) | (40,076 | ) | ||||||||||
Inventories | (5,681 | ) | (3,393 | ) | 25,372 | 24,086 | (20,660 | ) | ||||||||||||
Prepaid expenses and other assets | (20,275 | ) | 6,070 | 25,445 | (22,365 | ) | 23,377 | |||||||||||||
Accounts payable | 40,861 | 8,496 | (8,852 | ) | 46,979 | 21,056 | ||||||||||||||
Accrued and other liabilities | (2,083 | ) | 27,120 | (44,672 | ) | 24,544 | (10,329 | ) | ||||||||||||
Net cash provided by operating activities | 63,121 | 77,540 | 26,262 | 259,805 | 90,817 | |||||||||||||||
Investing activities: | ||||||||||||||||||||
Purchases of debt securities available-for-sale | (153,672 | ) | (134,708 | ) | (105,661 | ) | (550,912 | ) | (747,096 | ) | ||||||||||
Proceeds from maturities and sales of debt securities available-for-sale | 97,302 | 82,045 | 111,305 | 462,530 | 679,483 | |||||||||||||||
Purchases of equity securities | (150 | ) | — | — | (150 | ) | (2,250 | ) | ||||||||||||
Proceeds from sales of equity securities | 7,234 | — | — | 11,105 | 10,518 | |||||||||||||||
Purchases of property, equipment and software | (12,729 | ) | (15,906 | ) | (10,982 | ) | (48,055 | ) | (52,776 | ) | ||||||||||
Proceeds from sale of property and equipment | 1,495 | 184 | 2,339 | 4,894 | 10,936 | |||||||||||||||
Buyout of equipment operating lease | — | — | (332,396 | ) | — | (332,396 | ) | |||||||||||||
Decrease in non-current assets and deposits | — | — | 319,530 | — | 688,994 | |||||||||||||||
Increase in non-current assets and deposits | — | — | — | — | (313,013 | ) | ||||||||||||||
Acquisitions of companies, net of cash acquired | — | — | — | — | (32,025 | ) | ||||||||||||||
Adjustment to goodwill acquired in a prior year for resolution of a pre-acquisition income tax contingency | 28,645 | — | — | 36,307 | — | |||||||||||||||
Net cash used in investing activities | (31,875 | ) | (68,385 | ) | (15,865 | ) | (84,281 | ) | (89,625 | ) | ||||||||||
Financing activities: | ||||||||||||||||||||
Issuance of common stock | 10,789 | 7,247 | 10,124 | 30,862 | 27,988 | |||||||||||||||
Repurchase of Convertible Subordinated Notes | — | — | — | (148,126 | ) | (68,117 | ) | |||||||||||||
Purchase of minority interest in subsidiary | — | — | (42 | ) | — | (8,020 | ) | |||||||||||||
Repayment of debt obligations | — | — | (141 | ) | (129 | ) | (438 | ) | ||||||||||||
Net cash provided by/(used in) financing activities | 10,789 | 7,247 | 9,941 | (117,393 | ) | (48,587 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (3,040 | ) | (2,204 | ) | (4,242 | ) | (12,205 | ) | (3,564 | ) | ||||||||||
Increase/(decrease) in cash and cash equivalents | 38,995 | 14,198 | 16,096 | 45,926 | (50,959 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 225,654 | 211,456 | 202,627 | 218,723 | 269,682 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 264,649 | $ | 225,654 | $ | 218,723 | $ | 264,649 | $ | 218,723 | ||||||||||
* | 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)
Selected Financial Information (GAAP)
(In millions, except where noted)
(Unaudited)
Three Months Ended | ||||||||||||
Dec. 31, | Sept. 30, | Dec. 31, | ||||||||||
2005 | 2005 | 2004 | ||||||||||
Semiconductor revenues ( a ) | $ | 303.3 | $ | 311.7 | $ | 254.2 | ||||||
Storage Systems revenues ( a ) | $ | 202.9 | $ | 170.0 | $ | 165.5 | ||||||
Total revenues | $ | 506.2 | $ | 481.7 | $ | 419.7 | ||||||
Percentage change in revenues-qtr./qtr. ( b ) | 5.1 | % | 0.1 | % | 10.4 | % | ||||||
Percentage change in revenues-yr./yr. ( c ) | 20.6 | % | 26.7 | % | -9.3 | % | ||||||
Days sales outstanding | 57 | 56 | 58 | |||||||||
Days of inventory | 61 | 63 | 80 | |||||||||
Current ratio | 2.2 | 3.5 | 3.4 | |||||||||
Quick ratio | 1.7 | 2.7 | 2.7 | |||||||||
Gross margin as a percentage of revenues | 43.5 | % | 43.6 | % | 41.4 | % | ||||||
R&D as a percentage of revenues | 19.3 | % | 20.9 | % | 22.5 | % | ||||||
SG&A as a percentage of revenues | 11.8 | % | 12.1 | % | 13.1 | % | ||||||
Employees ( d ) | 4,324 | 4,415 | 4,429 | |||||||||
Revenues per employee (in thousands) ( e ) | $ | 468.3 | $ | 436.4 | $ | 379.0 | ||||||
Selected Cash Flow information | ||||||||||||
Purchases of property and equipment ( f ) | $ | 10.1 | $ | 14.8 | $ | 33.2 | ||||||
Depreciation / amortization ( g ) | $ | 12.1 | $ | 20.6 | $ | 19.9 |
( a ) | For the three months ended December 31, 2004, amounts presented have been recast to include RAID Storage Adapter (RSA) revenues into Storage Systems revenues from Semiconductor revenues. | |
( b ) | Represents sequential quarter growth in revenues. | |
( c ) | Represents growth in revenues in the quarter presented as compared to the same quarter of the previous year. | |
( d ) | Actual number of employees at the end of each period presented. | |
( e ) | Revenue per employee is calculated by annualizing revenue for each quarter presented and dividing it by the number of employees. | |
( f ) | Excludes purchases of software. | |
( g ) | Represents depreciation of fixed assets and amortization of software. |