Exhibit 99.1
Sun Microsystems Returns to Profitability;
Reports Results for Second Quarter Fiscal Year 2007
SANTA CLARA, Calif. - January 23, 2007 - Sun Microsystems, Inc. (NASDAQ: SUNW) reported results today for its fiscal second quarter, which ended December 31, 2006.
Revenues for the second quarter of fiscal 2007 were $3.566 billion, an increase of 7 percent as compared with $3.337 billion for the second quarter of fiscal 2006. The year-over-year revenue increase was due to sales of SPARC® chip multithreading (CMT) servers and x64-based servers as well as the increased acceptance of the Solaris™ 10 Operating System. Computer Systems products revenues increased 14 percent year-over-year, the fourth consecutive quarter of year-over-year revenue growth.
Net income for the second quarter of fiscal 2007 on a GAAP basis was $126 million or $0.03 per share on a diluted basis, as compared with a net loss of $223 million, or ($0.07) per share, for the second quarter of fiscal 2006.
GAAP net income for the second quarter of fiscal 2007 included: $58 million of stock-based compensation charges, $26 million of restructuring and related impairment of assets charges and a related tax benefit of $4 million. The net impact of these three items was approximately ($0.02) per share on a diluted basis.
Cash generated from operations for the second quarter of fiscal 2007 was $153 million, and cash and marketable debt securities balance at the end of the quarter was $4.837 billion.
“Sun’s financial performance this quarter demonstrates that our strategy and discipline are paying off,” said Jonathan Schwartz, CEO of Sun Microsystems. “The steady increase in adoption of our key developer platforms, the outstanding performance of our systems group, coupled with yesterday’s endorsement of Solaris by Intel and today’s landmark investment by KKR Private Equity Investors, L.P., are all validation of our momentum, and key drivers behind our push towards sustained growth and profitability.”
Sun has scheduled a conference call today to discuss its financial results for Q2 fiscal year 2007 at 1:30 p.m. (PT), which is being broadcast live atwww.sun.com/investors.
About Sun Microsystems, Inc.
A singular vision — “The Network Is The Computer™” — guides Sun in the development of technologies that power the world’s most important markets. Sun’s philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at http://sun.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statement regarding the key drivers behind our push towards sustained growth and profitability. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those predicted in any such forward-looking statements. Factors that could cause actual results to differ materially from those contained in these projections and forward-looking statements include: risks associated with developing, designing, manufacturing and distributing new products; lack of success in technological advancements; pricing pressures; lack of customer acceptance of new products; the possibility of errors or defects in new products; competition; adverse business
conditions; failure to retain key employees; the cancellation or delay of projects; the cancellation or delay of the alliance with Intel; our reliance on single-source suppliers; risks associated with our ability to purchase a sufficient amount of components to meet demand; inventory risks; risks associated with our international customers and operations; delays in product development or customer acceptance and implementation of new products and technologies; our dependence on significant customers and specific industries; and our dependence on channel partners. Please also refer to Sun’s periodic reports that are filed from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2006 and its Quarterly Report on Form 10-Q for the fiscal quarter ended October 1, 2006. Sun assumes no obligation to, and does not currently intend to, update these forward-looking statements.
To supplement Sun’s consolidated financial statements presented in accordance with GAAP, Sun provides non-GAAP net income (loss) and non-GAAP net income (loss) per share data. The presentation of these non-GAAP financial measures should be considered in addition to Sun’s GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Sun’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains and tax effects that may not be indicative of Sun’s core business operating results. Sun believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Sun’s performance. These non-GAAP financial measures also facilitate comparisons to Sun’s historical performance and its competitors’ operating results. Sun includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled “Non-GAAP Calculation of Net Income (Loss) Excluding Special Items “ following the text of this press release.
# # #
Sun, Sun Microsystems, the Sun logo, Solaris, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the US and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.
Investor Contact:
Bret Schaefer
650-786-0123
bret.schaefer@sun.com
Press Contact:
Kristi Rawlinson
650-786-6933
kristi.rawlinson@sun.com
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||
December 31, 2006 | December 25, 2005 | December 31, 2006 | December 25, 2005 | |||||||||||
Net revenues: | ||||||||||||||
Products | $ | 2,260 | $ | 2,108 | $ | 4,219 | $ | 3,812 | ||||||
Services | 1,306 | 1,229 | 2,536 | 2,251 | ||||||||||
Total net revenues | 3,566 | 3,337 | 6,755 | 6,063 | ||||||||||
Cost of sales: | ||||||||||||||
Cost of sales-products (including stock-based compensation expense of $4, $3, $7 and $5)(1) | 1,225 | 1,223 | 2,348 | 2,189 | ||||||||||
Cost of sales-services (including stock-based compensation expense of $8, $7, $16 and $14)(1) | 728 | 693 | 1,406 | 1,251 | ||||||||||
Total cost of sales | 1,953 | 1,916 | 3,754 | 3,440 | ||||||||||
Gross margin | 1,613 | 1,421 | 3,001 | �� | 2,623 | |||||||||
Operating expenses: | ||||||||||||||
Research and development (including stock-based compensation expense of $17, $18, $34 and $35)(1) | 507 | 541 | 980 | 980 | ||||||||||
Selling, general and administrative (including stock-based compensation expense of $29, $27, $59 and $51)(1) | 978 | 1,056 | 1,936 | 1,884 | ||||||||||
Restructuring and related impairment of long-lived assets | 26 | 10 | 47 | 22 | ||||||||||
Purchased in-process research and development | — | — | — | 60 | ||||||||||
Total operating expenses | 1,511 | 1,607 | 2,963 | 2,946 | ||||||||||
Operating income (loss) | 102 | (186 | ) | 38 | (323 | ) | ||||||||
Gain on equity investments, net | — | 14 | — | 27 | ||||||||||
Interest and other income, net | 47 | 25 | 89 | 69 | ||||||||||
Income (loss) before income taxes | 149 | (147 | ) | 127 | (227 | ) | ||||||||
Provision for income taxes | 23 | 76 | 57 | 119 | ||||||||||
Net income (loss) | $ | 126 | $ | (223 | ) | $ | 70 | $ | (346 | ) | ||||
Net income (loss) per common share-basic | $ | 0.04 | $ | (0.07 | ) | $ | 0.02 | $ | (0.10 | ) | ||||
Net income (loss) per common share-diluted | $ | 0.03 | $ | (0.07 | ) | $ | 0.02 | $ | (0.10 | ) | ||||
Shares used in the calculation of net income (loss) per common share-basic | 3,525 | 3,424 | 3,511 | 3,415 | ||||||||||
Shares used in the calculation of net income (loss) per common share-diluted | 3,626 | 3,424 | 3,566 | 3,415 | ||||||||||
(1) | For the three months ended December 31, 2006 and December 25, 2005 and the six months ended December 31, 2006 and December 25, 2005, respectively. |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
December 31, 2006 | June 30, 2006* | |||||
(unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 2,613 | $ | 3,569 | ||
Short-term marketable debt securities | 843 | 496 | ||||
Accounts receivable, net | 2,331 | 2,702 | ||||
Inventories | 605 | 540 | ||||
Deferred and prepaid tax assets | 233 | 209 | ||||
Prepaid expenses and other current assets | 737 | 757 | ||||
Total current assets | 7,362 | 8,273 | ||||
Property, plant and equipment, net | 1,579 | 1,812 | ||||
Long-term marketable debt securities | 1,381 | 783 | ||||
Goodwill | 2,571 | 2,610 | ||||
Other acquisition-related intangible assets, net | 772 | 929 | ||||
Other non-current assets, net | 637 | 675 | ||||
$ | 14,302 | $ | 15,082 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Current portion of long-term debt and short-term borrowings | $ | 1 | $ | 503 | ||
Accounts payable | 1,331 | 1,446 | ||||
Accrued payroll-related liabilities | 748 | 777 | ||||
Accrued liabilities and other | 1,049 | 1,190 | ||||
Deferred revenues | 1,631 | 1,988 | ||||
Warranty reserve | 236 | 261 | ||||
Total current liabilities | 4,996 | 6,165 | ||||
Long-term debt | 579 | 575 | ||||
Long-term deferred revenues | 567 | 506 | ||||
Other non-current obligations | 1,396 | 1,492 | ||||
Total stockholders’ equity | 6,764 | 6,344 | ||||
$ | 14,302 | $ | 15,082 | |||
* | Derived from audited financial statements |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Six Months Ended | ||||||||
December 31, 2006 | December 25, 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 70 | $ | (346 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 257 | 301 | ||||||
Amortization of other acquisition related intangible assets | 161 | 153 | ||||||
Deferred taxes | (20 | ) | 4 | |||||
Impairment of assets | 12 | — | ||||||
Gain on investments, net | — | (27 | ) | |||||
Stock-based compensation expense | 116 | 105 | ||||||
Purchased in-process research and development | — | 60 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | 390 | 236 | ||||||
Inventories | (89 | ) | 66 | |||||
Prepaid and other assets | 51 | 232 | ||||||
Accounts payable | (106 | ) | (88 | ) | ||||
Other liabilities | (532 | ) | (663 | ) | ||||
Net cash provided by operating activities | 310 | 33 | ||||||
Cash flows from investing activities: | ||||||||
Increase in restricted cash | (10 | ) | (54 | ) | ||||
Purchases of marketable debt securities | (1,894 | ) | (1,227 | ) | ||||
Proceeds from sales of marketable debt securities | 662 | 3,440 | ||||||
Proceeds from maturities of marketable debt securities | 296 | 163 | ||||||
Proceeds from sales of equity investments, net | 7 | 14 | ||||||
Proceeds from sale (purchases) of property, plant and equipment, net | 79 | (130 | ) | |||||
Acquisition of spare parts and other assets | (58 | ) | (40 | ) | ||||
Payments for acquisitions, net of cash acquired | (10 | ) | (3,150 | ) | ||||
Net cash used in investing activities | (928 | ) | (984 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock, net | 138 | 93 | ||||||
Principal payments on borrowings and other obligations, net | (476 | ) | — | |||||
Net cash provided by (used in) financing activities | (338 | ) | 93 | |||||
Net decrease in cash and cash equivalents | (956 | ) | (858 | ) | ||||
Cash and cash equivalents, beginning of period | 3,569 | 2,051 | ||||||
Cash and cash equivalents, end of period | $ | 2,613 | $ | 1,193 | ||||
SUN MICROSYSTEMS, INC.
NON-GAAP CALCULATION OF NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, 2006 | December 25, 2005 | December 31, 2006 | December 25, 2005 | |||||||||||||
Calculation of net income (loss) excluding special items: | ||||||||||||||||
Net income (loss)*, ** | $ | 126 | $ | (223 | ) | $ | 70 | $ | (346 | ) | ||||||
Restructuring and related impairment of long-lived assets | 26 | 10 | 47 | 22 | ||||||||||||
Purchased in-process research and development | — | — | — | 60 | ||||||||||||
Gain on equity investments, net | — | (14 | ) | — | (27 | ) | ||||||||||
Related tax effects | (4 | ) | (3 | ) | (11 | ) | (7 | ) | ||||||||
Net income (loss) excluding special items | $ | 148 | $ | (230 | ) | $ | 106 | $ | (298 | ) | ||||||
Net income (loss) excluding special items per common share – basic | $ | 0.04 | $ | (0.07 | ) | $ | 0.03 | $ | (0.09 | ) | ||||||
Net income (loss) excluding special items per common share – diluted | $ | 0.04 | $ | (0.07 | ) | $ | 0.03 | $ | (0.09 | ) | ||||||
Shares used in the calculation of net income (loss) excluding special items per common share – basic | 3,525 | 3,424 | 3,511 | 3,415 | ||||||||||||
Shares used in the calculation of net income (loss) excluding special items per common share – diluted | 3,626 | 3,424 | 3,566 | 3,415 | ||||||||||||
* | Net income for the three and six months ended December 31, 2006 included $58 million and $116 million of stock-based compensation expense or approximately $0.02 per share and $0.03 per share, respectively. Net loss for the three and six months ended December 25, 2005, included $55 million and $105 million of stock-based compensation expense or approximately $0.02 per share and $0.03 per share, respectively. |
** | Net income for the three and six months ended December 31, 2006 included $79 million and $158 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.02 per share and $0.05 per share, respectively. Net loss for the three and six months ended December 25, 2005 included $145 million and $267 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.04 per share and $0.08 per share, respectively. |
SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS – CONSOLIDATED (UNAUDITED)
STATEMENTS OF OPERATIONS (in millions except per share amounts) | FY 2007 | FY 2006 | FY 2005 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q2 | Q3 | Q4 | FY05 | |||||||||||||||||||||||||
(Restated) | (Restated) | |||||||||||||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||
Products | 1,959 | 2,260 | 4,219 | 1,704 | 2,108 | 2,035 | 2,524 | 8,371 | 1,840 | 1,683 | 1,927 | 7,126 | ||||||||||||||||||||||||
Services | 1,230 | 1,306 | 2,536 | 1,022 | 1,229 | 1,142 | 1,304 | 4,697 | 1,001 | 944 | 1,047 | 3,944 | ||||||||||||||||||||||||
TOTAL | 3,189 | 3,566 | 6,755 | 2,726 | 3,337 | 3,177 | 3,828 | 13,068 | 2,841 | 2,627 | 2,974 | 11,070 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 17.0 | % | 6.9 | % | 11.4 | % | 3.7 | % | 17.5 | % | 20.9 | % | 28.7 | % | 18.0 | % | -1.6 | % | -0.9 | % | -4.4 | % | -1.0 | % | ||||||||||||
Growth vs. prior quarter (%) | -16.7 | % | 11.8 | % | -8.3 | % | 22.4 | % | -4.8 | % | 20.5 | % | 8.1 | % | -7.5 | % | 13.2 | % | ||||||||||||||||||
COST OF SALES | ||||||||||||||||||||||||||||||||||||
Products | 1,123 | 1,225 | 2,348 | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 1,065 | 975 | 1,130 | 4,119 | ||||||||||||||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55 | ||||||||||||||||||||||||
Total | 1,123 | 1,225 | 2,348 | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 1,065 | 975 | 1,130 | 4,174 | ||||||||||||||||||||||||
Services | 678 | 728 | 1,406 | 558 | 693 | 658 | 703 | 2,612 | 578 | 565 | 613 | 2,307 | ||||||||||||||||||||||||
TOTAL | 1,801 | 1,953 | 3,754 | 1,524 | 1,916 | 1,810 | 2,189 | 7,439 | 1,643 | 1,540 | 1,743 | 6,481 | ||||||||||||||||||||||||
% of revenue | 56.5 | % | 54.8 | % | 55.6 | % | 55.9 | % | 57.4 | % | 57.0 | % | 57.2 | % | 56.9 | % | 57.8 | % | 58.6 | % | 58.6 | % | 58.5 | % | ||||||||||||
GROSS MARGIN | ||||||||||||||||||||||||||||||||||||
Products | 836 | 1,035 | 1,871 | 738 | 885 | 883 | 1,038 | 3,544 | 775 | 708 | 797 | 3,007 | ||||||||||||||||||||||||
% of product revenue | 42.7 | % | 45.8 | % | 44.3 | % | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 42.1 | % | 42.1 | % | 41.4 | % | 42.2 | % | ||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (55 | ) | |||||||||||||||||||||||
% of product revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.8 | % | ||||||||||||
Total product margin | 836 | 1,035 | 1,871 | 738 | 885 | 883 | 1,038 | 3,544 | 775 | 708 | 797 | 2,952 | ||||||||||||||||||||||||
% of product revenue | 42.7 | % | 45.8 | % | 44.3 | % | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 42.1 | % | 42.1 | % | 41.4 | % | 41.4 | % | ||||||||||||
Services gross margin | 552 | 578 | 1,130 | 464 | 536 | 484 | 601 | 2,085 | 423 | 379 | 434 | 1,637 | ||||||||||||||||||||||||
% of service revenue | 44.9 | % | 44.3 | % | 44.6 | % | 45.4 | % | 43.6 | % | 42.4 | % | 46.1 | % | 44.4 | % | 42.3 | % | 40.1 | % | 41.5 | % | 41.5 | % | ||||||||||||
Total excluding settlement | 1,388 | 1,613 | 3,001 | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,198 | 1,087 | 1,231 | 4,644 | ||||||||||||||||||||||||
% of revenue | 43.5 | % | 45.2 | % | 44.4 | % | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 42.2 | % | 41.4 | % | 41.4 | % | 42.0 | % | ||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (55 | ) | |||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.5 | % | ||||||||||||
TOTAL GROSS MARGIN | 1,388 | 1,613 | 3,001 | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,198 | 1,087 | 1,231 | 4,589 | ||||||||||||||||||||||||
% of revenue | 43.5 | % | 45.2 | % | 44.4 | % | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 42.2 | % | 41.4 | % | 41.4 | % | 41.5 | % | ||||||||||||
R&D | 473 | 507 | 980 | 439 | 541 | 523 | 543 | 2,046 | 447 | 450 | 472 | 1,785 | ||||||||||||||||||||||||
% of revenue | 14.8 | % | 14.2 | % | 14.5 | % | 16.1 | % | 16.2 | % | 16.5 | % | 14.2 | % | 15.7 | % | 15.7 | % | 17.1 | % | 15.9 | % | 16.1 | % | ||||||||||||
PURCHASED IN PROCESS R&D | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 2.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
SG&A | 958 | 978 | 1,936 | 828 | 1,056 | 1,020 | 1,133 | 4,037 | 726 | 735 | 788 | 2,919 | ||||||||||||||||||||||||
% of revenue | 30.0 | % | 27.4 | % | 28.7 | % | 30.4 | % | 31.6 | % | 32.1 | % | 29.6 | % | 30.9 | % | 25.6 | % | 28.0 | % | 26.5 | % | 26.4 | % | ||||||||||||
RESTRUCTURING CHARGES | 21 | 26 | 47 | 12 | 10 | 36 | 228 | 286 | 24 | 44 | 86 | 262 | ||||||||||||||||||||||||
% of revenue | 0.7 | % | 0.7 | % | 0.7 | % | 0.4 | % | 0.3 | % | 1.1 | % | 6.0 | % | 2.2 | % | 0.8 | % | 1.7 | % | 2.9 | % | 2.4 | % | ||||||||||||
IMPAIRMENT EXPENSE | 0 | 0 | 0 | 0 | 0 | 0 | 70 | 70 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.8 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
TOTAL OPERATING EXPENSES | 1,452 | 1,511 | 2,963 | 1,339 | 1,607 | 1,579 | 1,974 | 6,499 | 1,197 | 1,229 | 1,346 | 4,966 | ||||||||||||||||||||||||
% of revenue | 45.5 | % | 42.4 | % | 43.9 | % | 49.1 | % | 48.2 | % | 49.7 | % | 51.6 | % | 49.7 | % | 42.1 | % | 46.8 | % | 45.3 | % | 44.9 | % | ||||||||||||
OPERATING INCOME (LOSS) | (64 | ) | 102 | 38 | (137 | ) | (186 | ) | (212 | ) | (335 | ) | (870 | ) | 1 | (142 | ) | (115 | ) | (377 | ) | |||||||||||||||
Operating margin | -2.0 | % | 2.9 | % | 0.6 | % | -5.0 | % | -5.6 | % | -6.7 | % | -8.8 | % | -6.7 | % | 0.0 | % | -5.4 | % | -3.9 | % | -3.4 | % | ||||||||||||
Interest and other income, net | 42 | 47 | 89 | 44 | 25 | 26 | 19 | 114 | 33 | 37 | 32 | 133 | ||||||||||||||||||||||||
Gain (loss) on equity investments, net | 0 | 0 | 0 | 13 | 14 | 4 | (4 | ) | 27 | 9 | 2 | (1 | ) | 6 | ||||||||||||||||||||||
Settlement income | 0 | 0 | 0 | 0 | 0 | 0 | 54 | 54 | 0 | 54 | 0 | 54 | ||||||||||||||||||||||||
PRETAX INCOME (LOSS) | (22 | ) | 149 | 127 | (80 | ) | (147 | ) | (182 | ) | (266 | ) | (675 | ) | 43 | (49 | ) | (84 | ) | (184 | ) | |||||||||||||||
Pretax income (loss) margin | -0.7 | % | 4.2 | % | 1.9 | % | -2.9 | % | -4.4 | % | -5.7 | % | -6.9 | % | -5.2 | % | 1.5 | % | -1.9 | % | -2.8 | % | -1.7 | % | ||||||||||||
INCOME TAX PROVISION (BENEFIT) | 34 | 23 | 57 | 43 | 76 | 35 | 35 | 189 | 39 | (21 | ) | (134 | ) | (77 | ) | |||||||||||||||||||||
TAX RATE (%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
NET INCOME (LOSS) (Reported)***** | (56 | ) | 126 | 70 | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | 4 | (28 | ) | 50 | (107 | ) | ||||||||||||||||
Growth vs. prior year (%) | 54.5 | % | 156.5 | % | 120.2 | % | 7.5 | % | -5675.0 | % | -675.0 | % | -702.0 | % | -707.5 | % | 103.2 | % | 96.3 | % | -93.6 | % | 72.4 | % | ||||||||||||
Growth vs. prior quarter (%) | 81.4 | % | 325.0 | % | -346.0 | % | -81.3 | % | 2.7 | % | -38.7 | % | 103.0 | % | -800.0 | % | 278.6 | % | ||||||||||||||||||
Net income (loss) margin | -1.8 | % | 3.5 | % | 1.0 | % | -4.5 | % | -6.7 | % | -6.8 | % | -7.9 | % | -6.6 | % | 0.1 | % | -1.1 | % | 1.7 | % | -1.0 | % | ||||||||||||
EPS (Diluted) (Reported) | (0.02 | ) | 0.03 | 0.02 | (0.04 | ) | (0.07 | ) | (0.06 | ) | (0.09 | ) | (0.25 | ) | 0.00 | (0.01 | ) | 0.01 | (0.03 | ) | ||||||||||||||||
Growth vs. prior year (%) | 50.0 | % | 142.9 | % | 120.0 | % | 0.0 | % | -100.0 | % | -500.0 | % | -1000.0 | % | -733.3 | % | 100.0 | % | 95.7 | % | -95.7 | % | 75.0 | % | ||||||||||||
Growth vs. prior quarter (%) | 77.8 | % | 250.0 | % | -500.0 | % | -75.0 | % | 14.3 | % | -50.0 | % | 100.0 | % | N/A | 100.0 | % | |||||||||||||||||||
SHARES (CSE)(Diluted) | 3,497 | 3,626 | 3,566 | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,400 | 3,376 | 3,410 | 3,368 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,512 | 3,540 | 3,540 | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 3,375 | 3,381 | 3,408 | 3,408 |
The information above for the fiscal year ended June 30, 2005 has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K, filed with the SEC on September 13, 2005.
FY 2007 | FY 2006 | FY 2005 | ||||||||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q2 | Q3 | Q4 | FY05 | ||||||||||||||||||||||||
REVENUE BY GEOGRAPHY | ||||||||||||||||||||||||||||||||||||
UNITED STATES ($M) | 1,296 | 1,324 | 2,620 | 1,159 | 1,373 | 1,325 | 1,523 | 5,380 | 1,130 | 982 | 1,175 | 4,392 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 11.8 | % | -3.6 | % | 3.5 | % | 4.9 | % | 21.5 | % | 34.9 | % | 29.6 | % | 22.5 | % | -6.9 | % | -5.3 | % | -13.3 | % | -7.9 | % | ||||||||||||
Growth vs. prior quarter (%) | -14.9 | % | 2.2 | % | -1.4 | % | 18.5 | % | -3.5 | % | 14.9 | % | 2.3 | % | -13.1 | % | 19.7 | % | ||||||||||||||||||
INTERNATIONAL AMERICAS ($M) | 217 | 259 | 476 | 141 | 194 | 207 | 273 | 815 | 165 | 144 | 171 | 590 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 53.9 | % | 33.5 | % | 42.1 | % | 28.2 | % | 17.6 | % | 43.8 | % | 59.6 | % | 38.1 | % | 8.6 | % | 5.9 | % | 8.2 | % | 5.0 | % | ||||||||||||
Growth vs. prior quarter (%) | -20.5 | % | 19.4 | % | -17.5 | % | 37.6 | % | 6.7 | % | 31.9 | % | 50.0 | % | -12.7 | % | 18.8 | % | ||||||||||||||||||
EMEA ($M) | 1,131 | 1,344 | 2,475 | 970 | 1,239 | 1,119 | 1,375 | 4,703 | 1,037 | 1,009 | 1,133 | 4,152 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 16.6 | % | 8.5 | % | 12.0 | % | -0.3 | % | 19.5 | % | 10.9 | % | 21.4 | % | 13.3 | % | 0.6 | % | 0.7 | % | 4.2 | % | 5.3 | % | ||||||||||||
Growth vs. prior quarter (%) | -17.7 | % | 18.8 | % | -14.4 | % | 27.7 | % | -9.7 | % | 22.9 | % | 6.6 | % | -2.7 | % | 12.3 | % | ||||||||||||||||||
APAC ($M) | 545 | 639 | 1,184 | 456 | 531 | 526 | 657 | 2170 | 509 | 492 | 495 | 1,936 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 19.5 | % | 20.3 | % | 20.0 | % | 3.6 | % | 4.3 | % | 6.9 | % | 32.7 | % | 12.1 | % | 3.7 | % | 3.4 | % | -2.9 | % | 1.2 | % | ||||||||||||
Growth vs. prior quarter (%) | -17.0 | % | 17.2 | % | -7.9 | % | 16.4 | % | -0.9 | % | 24.9 | % | 15.7 | % | -3.3 | % | 0.6 | % | ||||||||||||||||||
% of Total Revenue | ||||||||||||||||||||||||||||||||||||
UNITED STATES (%) | 40.6 | % | 37.1 | % | 38.8 | % | 42.5 | % | 41.2 | % | 41.7 | % | 39.8 | % | 41.2 | % | 39.8 | % | 37.4 | % | 39.6 | % | 39.7 | % | ||||||||||||
INTERNATIONAL AMERICAS (%) | 6.8 | % | 7.3 | % | 7.1 | % | 5.2 | % | 5.8 | % | 6.5 | % | 7.1 | % | 6.2 | % | 5.8 | % | 5.5 | % | 5.7 | % | 5.3 | % | ||||||||||||
EMEA (%) | 35.5 | % | 37.7 | % | 36.6 | % | 35.6 | % | 37.1 | % | 35.2 | % | 35.9 | % | 36.0 | % | 36.5 | % | 38.4 | % | 38.1 | % | 37.5 | % | ||||||||||||
APAC (%) | 17.1 | % | 17.9 | % | 17.5 | % | 16.7 | % | 15.9 | % | 16.6 | % | 17.2 | % | 16.6 | % | 17.9 | % | 18.7 | % | 16.6 | % | 17.5 | % | ||||||||||||
PRODUCTS AND SERVICES REVENUE | ||||||||||||||||||||||||||||||||||||
COMPUTER SYSTEMS PRODUCTS ($M) | 1,468 | 1,634 | 3,102 | 1,274 | 1,438 | 1,474 | 1,811 | 5,997 | 1,505 | 1,391 | 1,576 | 5,826 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 15.2 | % | 13.6 | % | 14.4 | % | -5.9 | % | -4.5 | % | 6.0 | % | 14.9 | % | 2.9 | % | -4.0 | % | 1.9 | % | -3.8 | % | -0.5 | % | ||||||||||||
Growth vs. prior quarter (%) | -18.9 | % | 11.3 | % | -19.2 | % | 12.9 | % | 2.5 | % | 22.9 | % | 11.2 | % | -7.6 | % | 13.3 | % | ||||||||||||||||||
DATA MANAGEMENT PRODUCTS ($M) | 491 | 626 | 1,117 | 430 | 670 | 561 | 713 | 2,374 | 335 | 292 | 351 | 1,300 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 14.2 | % | -6.6 | % | 1.5 | % | 33.5 | % | 100.0 | % | 92.1 | % | 103.1 | % | 82.6 | % | -10.9 | % | -15.6 | % | -17.8 | % | -13.4 | % | ||||||||||||
Growth vs. prior quarter (%) | -31.1 | % | 27.5 | % | 22.5 | % | 55.8 | % | -16.3 | % | 27.1 | % | 4.0 | % | -12.8 | % | 20.2 | % | ||||||||||||||||||
SUPPORT SERVICES ($M) | 987 | 1,001 | 1,988 | 835 | 953 | 904 | 986 | 3,678 | 774 | 734 | 778 | 3,031 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 18.2 | % | 5.0 | % | 11.2 | % | 12.1 | % | 23.1 | % | 23.2 | % | 26.7 | % | 21.3 | % | 3.9 | % | 0.4 | % | -1.8 | % | 1.1 | % | ||||||||||||
Growth vs. prior quarter (%) | 0.1 | % | 1.4 | % | 7.3 | % | 14.1 | % | -5.1 | % | 9.1 | % | 3.9 | % | -5.2 | % | 6.0 | % | ||||||||||||||||||
PROFESSIONAL SERVICES & EDUCATIONAL SERVICES ($M) | 243 | 305 | 548 | 187 | 276 | 238 | 318 | 1,019 | 227 | 210 | 269 | 913 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 29.9 | % | 10.5 | % | 18.4 | % | -9.7 | % | 21.6 | % | 13.3 | % | 18.2 | % | 11.6 | % | 14.1 | % | 0.5 | % | 6.7 | % | 9.9 | % | ||||||||||||
Growth vs. prior quarter (%) | -23.6 | % | 25.5 | % | -30.5 | % | 47.6 | % | -13.8 | % | 33.6 | % | 9.7 | % | -7.5 | % | 28.1 | % | ||||||||||||||||||
NET BOOKINGS ($M)** | 3,036 | 3,603 | 6,639 | 2,413 | 3,018 | 2,680 | 3,376 | 11,487 | 2,976 | 2,536 | 3,078 | 11,043 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 25.8 | % | 19.4 | % | 22.2 | % | -1.6 | % | 1.4 | % | 5.7 | % | 9.7 | % | 4.0 | % | -0.1 | % | -3.1 | % | -3.2 | % | -2.4 | % | ||||||||||||
Growth vs. prior quarter (%) | (10.1 | %) | 18.7 | % | -21.6 | % | 25.1 | % | -11.2 | % | 26.0 | % | 21.3 | % | -14.8 | % | 21.4 | % | ||||||||||||||||||
PRODUCT BACKLOG ($M)*, ** | 994 | 1,021 | 718 | 1,021 | 980 | 1,099 | 792 | 701 | 805 |
* | Our product backlog includes orders for which customer-requested delivery is scheduled within six months and orders that have been specified by the customers for which products have been shipped but revenue has been deferred. |
** | The numbers presented prior to Q1 fiscal 2007 did not contain StorageTek information and should not be viewed as comparable. |
BALANCE SHEETS (in millions) | FY 2007 | FY 2006 | FY 2005 | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||
(Restated) | (Restated) | ||||||||||||||||||||||||||||||||||
CASH & ST INVESTMENTS | 3,971 | 3,456 | 2,501 | 2,449 | 2,872 | 4,065 | 3,639 | 3,135 | 3,396 | ||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET | 2,036 | 2,331 | 2,087 | 2,289 | 2,301 | 2,702 | 1,840 | 2,020 | 2,231 | ||||||||||||||||||||||||||
RAW MATERIALS | 119 | 126 | 82 | 95 | 49 | 68 | 64 | 75 | 48 | ||||||||||||||||||||||||||
WORK IN PROCESS | 92 | 106 | 183 | 134 | 125 | 97 | 157 | 121 | 121 | ||||||||||||||||||||||||||
FINISHED GOODS | 373 | 373 | 286 | 321 | 400 | 375 | 208 | 192 | 262 | ||||||||||||||||||||||||||
TOTAL INVENTORIES | 584 | 605 | 551 | 550 | 574 | 540 | 429 | 388 | 431 | ||||||||||||||||||||||||||
OTHER CURRENT ASSETS | 961 | 970 | 998 | 933 | 966 | 966 | 1,220 | 1,419 | 1,133 | ||||||||||||||||||||||||||
TOTAL CURRENT ASSETS | 7,552 | 7,362 | 6,137 | 6,221 | 6,713 | 8,273 | 7,128 | 6,962 | 7,191 | ||||||||||||||||||||||||||
PP&E, NET | 1,583 | 1,579 | 1,901 | 1,914 | 1,880 | 1,812 | 1,903 | 1,851 | 1,769 | ||||||||||||||||||||||||||
GOODWILL | 2,566 | 2,571 | 2,466 | 2,472 | 2,487 | 2,610 | 406 | 441 | 441 | ||||||||||||||||||||||||||
LT MARKETABLE DEBT SECURITIES | 700 | 1,381 | 2,032 | 1,827 | 1,557 | 783 | 3,825 | 4,222 | 4,128 | ||||||||||||||||||||||||||
OTHER NON-CURRENT ASSETS, NET | 1,493 | 1,409 | 1,938 | 1,874 | 1,733 | 1,604 | 774 | 704 | 661 | ||||||||||||||||||||||||||
TOTAL ASSETS | 13,894 | 14,302 | 14,474 | 14,308 | 14,370 | 15,082 | 14,036 | 14,180 | 14,190 | ||||||||||||||||||||||||||
SHORT TERM BORROWINGS | 2 | 1 | 512 | 508 | 505 | 503 | 0 | 0 | 0 | ||||||||||||||||||||||||||
ACCOUNTS PAYABLE | 1,292 | 1,331 | 1,091 | 1,214 | 1,315 | 1,446 | 963 | 1,071 | 1,167 | ||||||||||||||||||||||||||
ACCRUED LIABILITIES & OTHER | 1,968 | 2,033 | 2,147 | 1,905 | 1,918 | 2,228 | 2,049 | 2,090 | 1,951 | ||||||||||||||||||||||||||
DEFERRED REVENUES | 1,695 | 1,631 | 1,507 | 1,541 | 1,684 | 1,988 | 1,313 | 1,399 | 1,648 | ||||||||||||||||||||||||||
TOTAL CURRENT LIABILITIES | 4,957 | 4,996 | 5,257 | 5,168 | 5,422 | 6,165 | 4,325 | 4,560 | 4,766 | ||||||||||||||||||||||||||
LT DEBT | 582 | 579 | 603 | 593 | 585 | 575 | 1,145 | 1,116 | 1,123 | ||||||||||||||||||||||||||
LT DEFERRED REVENUES | 558 | 567 | 549 | 469 | 472 | 506 | 519 | 519 | 544 | ||||||||||||||||||||||||||
OTHER NON-CURRENT OBLIGATIONS | 1,388 | 1,396 | 1,410 | 1,585 | 1,504 | 1,492 | 1,482 | 1,429 | 1,083 | ||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | 6,409 | 6,764 | 6,655 | 6,493 | 6,387 | 6,344 | 6,565 | 6,556 | 6,674 | ||||||||||||||||||||||||||
TOTAL LIABILITIES & SE | 13,894 | 14,302 | 14,474 | 14,308 | 14,370 | 15,082 | 14,036 | 14,180 | 14,190 | ||||||||||||||||||||||||||
CASH FLOW | Q1 | Q2 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q2 | Q3 | Q4 | FY05 | |||||||||||||||||||||||
OPERATING ACTIVITIES | 157 | 153 | 310 | 224 | (191 | ) | 197 | 410 | 640 | 52 | (2 | ) | 195 | 369 | |||||||||||||||||||||
INVESTING ACTIVITIES | 109 | (1,037 | ) | (928 | ) | (770 | ) | (214 | ) | 217 | 1,346 | 579 | (475 | ) | (345 | ) | 238 | (425 | ) | ||||||||||||||||
FINANCING ACTIVITIES | (473 | ) | 135 | (338 | ) | 3 | 90 | 34 | 172 | 299 | 99 | 18 | 84 | (34 | ) | ||||||||||||||||||||
KEY METRICS | Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||
INVENTORY TURNS (hist.) | 13.6 | 13.4 | 13.4 | 13.7 | 10.8 | 15.3 | 14.7 | 15.0 | 14.5 | ||||||||||||||||||||||||||
INVENTORY TURNS-PRODUCT ONLY (hist.) | 8.8 | 8.6 | 8.6 | 8.8 | 6.9 | 9.9 | 9.4 | 9.7 | 9.3 | ||||||||||||||||||||||||||
DAYS SALES OUTSTANDING | 57 | 59 | 69 | 62 | 65 | 64 | 58 | 69 | 68 | ||||||||||||||||||||||||||
DAYS PAYABLES OUTSTANDING | (65 | ) | (61 | ) | (64 | ) | (57 | ) | (65 | ) | (59 | ) | (53 | ) | (63 | ) | (60 | ) | |||||||||||||||||
DAYS OF SUPPLY ON HAND | 29 | 28 | 33 | 26 | 29 | 22 | 23 | 23 | 22 | ||||||||||||||||||||||||||
L-T DEBT/EQUITY (%) | 9.1 | % | 8.6 | % | 9.1 | % | 9.1 | % | 9.2 | % | 9.1 | % | 17.4 | % | 17.0 | % | 16.8 | % | |||||||||||||||||
ROE (12 mo. avg.)(%) | -12.4 | % | -6.9 | % | -1.5 | % | -4.9 | % | -7.8 | % | -13.4 | % | -1.6 | % | 9.6 | % | -1.6 | % | |||||||||||||||||
BOOK VALUE PER SHARE ($) | 1.82 | 1.91 | 1.95 | 1.89 | 1.84 | 1.81 | 1.95 | 1.94 | 1.96 | ||||||||||||||||||||||||||
PRICE PER SHARE @ CLOSE | 4.95 | 5.42 | 3.87 | 4.36 | 4.97 | 4.15 | 5.44 | 4.03 | 3.73 | ||||||||||||||||||||||||||
ROA (12 mo. avg.)(%) | -5.5 | % | -3.1 | % | -0.7 | % | -2.3 | % | -3.6 | % | -5.9 | % | -0.7 | % | 4.4 | % | -0.8 | % | |||||||||||||||||
DEPREC. & AMORT. ($M) | 204 | 214 | 189 | 265 | 228 | 224 | 191 | 191 | 198 | ||||||||||||||||||||||||||
CAPITAL INVESTMENTS, NET ($M)* | (160 | ) | 81 | 48 | 82 | 63 | 122 | 85 | 58 | 58 | |||||||||||||||||||||||||
SPARES INVESTMENTS ($M) | 34 | 24 | 20 | 20 | 13 | 20 | 30 | 26 | 22 | ||||||||||||||||||||||||||
NUMBER OF EMPLOYEES | 36,250 | 34,631 | 38,588 | 38,802 | 38,312 | 38,061 | 31,855 | 31,999 | 31,117 | ||||||||||||||||||||||||||
REV. PER EMP. (12 mo.)($K) | 373.3 | 397.3 | 289.4 | 300.6 | 314.8 | 343.3 | 352.5 | 350.2 | 355.8 | ||||||||||||||||||||||||||
GM PER EMP. (12mo.)($K) | 160.4 | 173.5 | 122.3 | 127.3 | 134.6 | 147.9 | 143.2 | 143.2 | 147.5 | ||||||||||||||||||||||||||
OP EXP AS % OF REV (12mo.) | 48.9 | % | 47.4 | % | 45.8 | % | 47.3 | % | 48.1 | % | 49.7 | % | 49.3 | % | 46.9 | % | 44.9 | % | |||||||||||||||||
NET INCOME (LOSS) PER EMP. (12mo.)($K) | (22.0 | ) | (12.9 | ) | (2.5 | ) | (8.4 | ) | (13.2 | ) | (22.7 | ) | (3.2 | ) | 19.50 | (3.4 | ) |
The information above has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2005, filed with the SEC on September 13, 2005.
* | Included in the Q1 fiscal 2007 capital investments, net, are the cash proceeds of approximately $214 million from the sale of our Newark, California facility. |
NON-GAAP CALCULATION OF NET (in millions except per share amounts) | FY2007 | FY 2006 | FY 2005 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q2 | Q3* | Q4*** | FY05* | |||||||||||||||||||||||||
(Restated) | (Restated) | |||||||||||||||||||||||||||||||||||
GAAP net income (loss)****, ***** | (56 | ) | 126 | 70 | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | 4 | (28 | ) | 50 | (107 | ) | ||||||||||||||||
Purchased in-process research and development | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Restructuring and related impairment of long-lived assets | 21 | 26 | 47 | 12 | 10 | 36 | 228 | 286 | 24 | 44 | 86 | 262 | ||||||||||||||||||||||||
Loss (gain) on equity investments, net | 0 | 0 | 0 | (13 | ) | (14 | ) | (4 | ) | 4 | (27 | ) | (9 | ) | (2 | ) | 1 | (6 | ) | |||||||||||||||||
Impairment expense | 0 | 0 | 0 | 0 | 0 | 0 | 70 | 70 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Settlement income | 0 | 0 | 0 | 0 | 0 | 0 | (54 | ) | (54 | ) | 0 | (54 | ) | 0 | (54 | ) | ||||||||||||||||||||
Settlement of litigation** | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55 | ||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (34 | ) | 0 | (34 | ) | ||||||||||||||||||||||
Related tax effects | (7 | ) | (4 | ) | (11 | ) | (4 | ) | (3 | ) | (4 | ) | (8 | ) | (19 | ) | (6 | ) | (7 | ) | (6 | ) | (26 | ) | ||||||||||||
Net income (loss) excluding special items | (42 | ) | 148 | 106 | (68 | ) | (230 | ) | (189 | ) | (61 | ) | (548 | ) | 13 | (81 | ) | 131 | 90 | |||||||||||||||||
Growth vs. prior year (%) | 38.2 | % | 164.3 | % | 135.6 | % | -351.9 | % | -1869.2 | % | 133.3 | % | -146.6 | % | -708.9 | % | 113.0 | % | 68.1 | % | 174.4 | % | 111.4 | % | ||||||||||||
EPS (Diluted) excluding special items | (0.01 | ) | 0.04 | 0.03 | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.02 | ) | (0.16 | ) | 0.00 | (0.02 | ) | 0.04 | 0.03 | |||||||||||||||||
Growth vs. prior year (%) | 50.0 | % | 157.1 | % | 133.3 | % | -300.0 | % | -100.0 | % | -100.0 | % | -150.0 | % | 633.3 | % | 100.0 | % | 75.0 | % | 180.0 | % | 112.5 | % | ||||||||||||
SHARES (CSE)(Diluted) | 3,497 | 3,626 | 3,566 | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,400 | 3,376 | 3,410 | 3,368 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,512 | 3,540 | 3,540 | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 3,375 | 3,381 | 3,408 | 3,408 |
* | The non-GAAP calculation of Net income (loss) excluding special items for the three month period ended March 27, 2005 and year ended June 30, 2005 includes a $69 million benefit for the impact of the change in Dutch withholding tax legislation which was effected in the third quarter of fiscal 2005 and a $213 million benefit arising from adjustments to our income tax reserves resulting from the conclusion of a U.S. and foreign income tax audit. |
** | Included in Cost of sales – products |
*** | The non-GAAP calculation of net income excluding special items for the three months ended June 30, 2005 includes a $213 million benefit arising from adjustments to our income tax reserves resulting from the conclusion of a U.S. and foreign income tax audit. |
**** | Net income (loss) for the three months ended December 31, 2006 and October 1, 2006, included $58 million and $58 million of stock-based compensation expense or approximately $0.02 per share and $0.02 per share, respectively. Net loss for the three months ended June 30, 2006, three months ended March 26, 2006, three months ended December 25, 2005 and three months ended September 25, 2005 included $63 million, $57 million, $55 million and $50 million of stock-based compensation expense or approximately $0.02 per share, $0.02 per share, $0.02 per share and $0.01 per share, respectively. |
***** | Net income (loss) for the three months ended December 31, 2006 and October 1, 2006, included $79 million $79 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.02 per share and $0.02 per share, respectively. Net loss for the three months ended June 30, 2006, three months ended March 26, 2006, three month ended December 25, 2005 and three months ended September 25, 2005 included $86 million, $87 million, $145 million and $122 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.02 per share, $0.03 per share, $0.04 per share and $0.04 per share, respectively. |
The information above for the fiscal year ended June 30, 2005 has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K, filed with the SEC on September 13, 2005.