Exhibit 99.1
PRESS RELEASE
Sun Microsystems Exceeds Profit Target
Reports Results for Fourth Quarter and Full Fiscal Year 2007
SANTA CLARA, Calif. - July 30, 2007 - Sun Microsystems, Inc. (NASDAQ: SUNW) reported results today for its fourth quarter and full fiscal year, which ended June 30, 2007, exceeding its operating margin target, improving gross margin and delivering another sequential quarter of profit.
Revenues for the fourth quarter of fiscal 2007 were $3.835 billion. For the full fiscal year, the Company reported revenues of $13.873 billion, an increase of 6.2 percent over fiscal year 2006. Total gross margin as a percent of revenues for the fourth quarter was 47.2 percent, and gross margin for the full fiscal year was 45.2 percent, an increase of 2.1 percentage points over fiscal year 2006. Operating margin for the fourth quarter was 8.5 percent.
Net income for the fourth quarter of fiscal 2007 on a GAAP basis was $329 million, or $0.09 per share on a diluted basis. For the full fiscal year, net income was $473 million, or $0.13 per share, on a diluted basis, as compared with a net loss of $864 million, or ($0.25) per share, for fiscal 2006.
Cash generated from operations for the fourth quarter of fiscal 2007 was $564 million, and cash and marketable debt securities balance at the end of the quarter was approximately $5.9 billion.
“With a solid strategy and consistent execution, we delivered on our commitment to achieve at least 4 percent operating margin in the fourth quarter. This milestone marks significant progress toward our longer-term growth plan of at least 10 percent operating margin for the full fiscal year 2009,” said Jonathan Schwartz, president and CEO of Sun Microsystems. “The Solaris™ 10 Operating System continues to fuel opportunity for us and our partners, allowing customers to leverage built-in virtualization to harvest more value from their datacenters, without the unnecessary expense of separate software licenses.”
Sun has scheduled a conference call today to discuss its financial results for the fourth quarter 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.
GAAP Net Income: GAAP net income for the fourth quarter of fiscal 2007 included: $48 million of stock-based compensation charges,
$15 million of restructuring and related impairment of assets charges, $70 million of purchase price accounting adjustments and intangible asset amortization charges related to acquisitions in fiscal 2006, $1 million of gain on equity investments and a $5 million benefit of related tax effects. The net impact of these five items reduced earnings per share on a diluted basis by approximately $0.04.
This press release contains forward-looking statements regarding the future results and performance of Sun Microsystems, Inc., including statements regarding Sun’s longer-term growth plan of at least a 10% operating margin for the full fiscal year 2009. 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 Sun’s actual results to differ materially from those contained in such 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 and implementation of new products and technologies; the possibility of errors or defects in new products; a material acquisition, restructuring or other event that results in significant charges; competition; adverse business conditions; failure to retain key employees; the cancellation or delay of projects; Sun’s reliance on single-source suppliers; risks associated with Sun’s ability to purchase a sufficient amount of components to meet demand; inventory risks; risks associated with Sun’s international customers and operations; delays in product development; Sun’s dependence on significant customers and specific industries; and Sun’s 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 Reports on Form 10-Q for the fiscal quarters ended October 1, 2006, December 31, 2006 and April 1, 2007. Sun assumes no obligation to, and does not currently intend to, update these forward-looking statements except as required by law.
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.
Investor Contact:
Bret Schaefer
650-786-0123
bret.schaefer@sun.com
Press Contact:
Kristi Rawlinson
650-786-6933
kristi.rawlinson@sun.com
Industry Analyst Contact:
Melissa Selcher
650-787-1807
melissa.selcher@sun.com
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Fiscal Years Ended | |||||||||||||
June 30, 2007 | June 30, 2006 | June 30, 2007 | June 30, 2006 | |||||||||||
Net revenues: | ||||||||||||||
Products | $ | 2,492 | $ | 2,524 | $ | 8,771 | $ | 8,371 | ||||||
Services | 1,343 | 1,304 | 5,102 | 4,697 | ||||||||||
Total net revenues | 3,835 | 3,828 | 13,873 | 13,068 | ||||||||||
Cost of sales: | ||||||||||||||
Cost of sales-products (including stock-based compensation expense of $3, $2, $13 and $10)(1) | 1,312 | 1,486 | 4,811 | 4,827 | ||||||||||
Cost of sales-services (including stock-based compensation expense of $8, $8, $31 and $29)(1) | 711 | 703 | 2,797 | 2,612 | ||||||||||
Total cost of sales | 2,023 | 2,189 | 7,608 | 7,439 | ||||||||||
Gross margin | 1,812 | 1,639 | 6,265 | 5,629 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development (including stock-based compensation expense of $14, $20, $64 and $74)(1) | 514 | 543 | 2,008 | 2,046 | ||||||||||
Selling, general and administrative (including stock-based compensation expense of $23, $33, $106 and $112)(1) | 958 |
| 1,135 |
| 3,851 | 4,039 | ||||||||
Restructuring and related impairment of long-lived assets | 15 |
| 296 |
| 97 | 354 | ||||||||
Purchased in-process research and development | — | — | — | 60 | ||||||||||
Total operating expenses | 1,487 | 1,974 | 5,956 | 6,499 | ||||||||||
Operating profit (loss) | 325 | (335 | ) | 309 | (870 | ) | ||||||||
Gain (loss) on equity investments, net | 1 | (4 | ) | 6 | 27 | |||||||||
Interest and other income, net | 59 | 19 | 214 | 114 | ||||||||||
Settlement income | — | 54 | 54 | 54 | ||||||||||
Income (loss) before income taxes | 385 | (266 | ) | 583 | (675 | ) | ||||||||
Provision for income taxes | 56 | 35 | 110 | 189 | ||||||||||
Net income (loss) | $ | 329 | $ | (301 | ) | $ | 473 | $ | (864 | ) | ||||
Net income (loss) per common share-basic | $ | 0.09 | $ | (0.09 | ) | $ | 0.13 | $ | (0.25 | ) | ||||
Net income (loss) per common share-diluted | $ | 0.09 | $ | (0.09 | ) | $ | 0.13 | $ | (0.25 | ) | ||||
Shares used in the calculation of net income (loss) per common share-basic | 3,555 | 3,475 | 3,531 | 3,437 | ||||||||||
Shares used in the calculation of net income (loss) per common share-diluted | 3,632 | 3,475 | 3,606 | 3,437 | ||||||||||
(1) | For the three months ended June 30, 2007 and June 30, 2006 and fiscal year ended June 30, 2007 and June 30, 2006, respectively. |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 30, 2007 | June 30, 2006* | |||||
(unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 3,620 | $ | 3,569 | ||
Short-term marketable debt securities | 962 | 496 | ||||
Accounts receivable, net | 2,964 | 2,702 | ||||
Inventories | 524 | 540 | ||||
Deferred and prepaid tax assets | 200 | 209 | ||||
Prepaid expenses and other current assets | 1,058 | 757 | ||||
Total current assets | 9,328 | 8,273 | ||||
Property, plant and equipment, net | 1,533 | 1,812 | ||||
Long-term marketable debt securities | 1,360 | 783 | ||||
Goodwill | 2,514 | 2,610 | ||||
Other acquisition-related intangible assets, net | 633 | 929 | ||||
Other non-current assets | 470 | 675 | ||||
$ | 15,838 | $ | 15,082 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Current portion of long-term debt and short-term borrowings | $ | 1 | $ | 503 | ||
Accounts payable | 1,428 | 1,446 | ||||
Accrued payroll-related liabilities | 842 | 777 | ||||
Accrued liabilities and other | 887 | 1,190 | ||||
Deferred revenues | 2,073 | 1,988 | ||||
Warranty reserve | 220 | 261 | ||||
Total current liabilities | 5,451 | 6,165 | ||||
Long-term debt | 1,264 | 575 | ||||
Long-term deferred revenues | 659 | 506 | ||||
Other non-current obligations | 1,285 | 1,492 | ||||
Total stockholders’ equity | 7,179 | 6,344 | ||||
$ | 15,838 | $ | 15,082 | |||
* | Derived from audited financial statements |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Fiscal Years Ended | ||||||||
June 30, 2007 | June 30, 2006 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 473 | $ | (864 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 517 | 575 | ||||||
Amortization of other acquisition related intangible assets | 313 | 330 | ||||||
Deferred taxes | (23 | ) | (19 | ) | ||||
Impairment of assets | 16 | 155 | ||||||
Gain on investments, net | (42 | ) | (10 | ) | ||||
Stock-based compensation expense | 214 | 225 | ||||||
Purchased in-process research and development | — | 60 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (235 | ) | (163 | ) | ||||
Inventories | (5 | ) | 44 | |||||
Prepaid and other assets | (212 | ) | 245 | |||||
Accounts payable | (5 | ) | 130 | |||||
Other liabilities | (53 | ) | (68 | ) | ||||
Net cash provided by operating activities | 958 | 640 | ||||||
Cash flows from investing activities: | ||||||||
Increase in restricted cash | (5 | ) | (69 | ) | ||||
Purchases of marketable debt securities | (3,088 | ) | (1,831 | ) | ||||
Proceeds from sales of marketable debt securities | 1,335 | 5,434 | ||||||
Proceeds from maturities of marketable debt securities | 725 | 580 | ||||||
Proceeds from sales of equity investments, net | 16 | 15 | ||||||
Purchases of property, plant and equipment | (488 | ) | (388 | ) | ||||
Proceeds from sales of property, plant and equipment | 451 | — | ||||||
Payments for acquisitions, net of cash acquired | (23 | ) | (3,162 | ) | ||||
Net cash provided by (used in) investing activities | (1,077 | ) | 579 | |||||
Cash flows from financing activities: | ||||||||
Purchase of hedge on convertible notes | (83 | ) | — | |||||
Proceeds from issuance of common stock, net | 44 | 249 | ||||||
Proceeds from borrowings and other obligations | 720 | 50 | ||||||
Principal payments on borrowings and other obligations | (511 | ) | — | |||||
Net cash provided by financing activities | 170 | 299 | ||||||
Net decrease in cash and cash equivalents | 51 | 1,518 | ||||||
Cash and cash equivalents, beginning of period | 3,569 | 2,051 | ||||||
Cash and cash equivalents, end of period | $ | 3,620 | $ | 3,569 | ||||
SUN MICROSYSTEMS, INC.
NON-GAAP CALCULATION OF NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Fiscal Years Ended | |||||||||||||||
June 30, 2007 | June 30, 2006 | June 30, 2007 | June 30, 2006 | |||||||||||||
Calculation of net income (loss) excluding special items: | ||||||||||||||||
Net income (loss)*, ** | $ | 329 | $ | (301 | ) | $ | 473 | $ | (864 | ) | ||||||
Restructuring and related impairment of long-lived assets | 15 | 296 | 97 | 354 | ||||||||||||
Purchased in-process research and development | — | — | — | 60 | ||||||||||||
Gain (loss) on equity investments, net | (1 | ) | 4 | (6 | ) | (27 | ) | |||||||||
Settlement income | — | (54 | ) | (54 | ) | (54 | ) | |||||||||
Related tax effects | (5 | ) | (8 | ) | (24 | ) | (19 | ) | ||||||||
Net income (loss) excluding special items | $ | 338 | $ | (63 | ) | $ | 486 | $ | (550 | ) | ||||||
Net income (loss) excluding special items per common share – basic | $ | 0.10 | $ | (0.02 | ) | $ | 0.14 | $ | (0.16 | ) | ||||||
Net income (loss) excluding special items per common share – diluted | $ | 0.09 | $ | (0.02 | ) | $ | 0.13 | $ | (0.16 | ) | ||||||
Shares used in the calculation of net income (loss) excluding special items per common share – basic | 3,555 | 3,475 | 3,531 | 3,437 | ||||||||||||
Shares used in the calculation of net income (loss) excluding special items per common share – diluted | 3,632 | 3,475 | 3,606 | 3,437 | ||||||||||||
* | Net income for the three months and year ended June 30, 2007 included $48 million and $214 million of stock-based compensation expense or approximately $0.01 per share and $0.06 per share, respectively. Net loss for the three months and year ended June 30, 2006 included $63 million and $225 million of stock-based compensation expense or approximately $0.02 per share and $0.07 per share, respectively. |
** | Net income for the three months and year ended June 30, 2007 included $70 million and $303 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.02 per share and $0.08 per share, respectively. Net loss for the three months and year ended June 30, 2006 included $86 million and $440 million of purchase price accounting adjustments and intangible asset amortization relating to our fiscal 2006 acquisitions or approximately $0.02 per share and $0.13 per share, respectively. |
SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS – CONSOLIDATED (UNAUDITED)
STATEMENTS OF OPERATIONS | FY 2007 | FY 2006 | FY 2005 | |||||||||||||||||||||||||||||||||
(in millions except per share amounts) | Q1 | Q2 | Q3 | Q4 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q4 | FY05 | ||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||
Products | 1,959 | 2,260 | 2,060 | 2,492 | 8,771 | 1,704 | 2,108 | 2,035 | 2,524 | 8,371 | 1,927 | 7,126 | ||||||||||||||||||||||||
Services | 1,230 | 1,306 | 1,223 | 1,343 | 5,102 | 1,022 | 1,229 | 1,142 | 1,304 | 4,697 | 1,047 | 3,944 | ||||||||||||||||||||||||
TOTAL | 3,189 | 3,566 | 3,283 | 3,835 | 13,873 | 2,726 | 3,337 | 3,177 | 3,828 | 13,068 | 2,974 | 11,070 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 17.0 | % | 6.9 | % | 3.3 | % | 0.2 | % | 6.2 | % | 3.7 | % | 17.5 | % | 20.9 | % | 28.7 | % | 18.0 | % | -4.4 | % | -1.0 | % | ||||||||||||
Growth vs. prior quarter (%) | -16.7 | % | 11.8 | % | -7.9 | % | 16.8 | % | -8.3 | % | 22.4 | % | -4.8 | % | 20.5 | % | 13.2 | % | ||||||||||||||||||
COST OF SALES | ||||||||||||||||||||||||||||||||||||
Products | 1,123 | 1,228 | 1,148 | 1,312 | 4,811 | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 1,130 | 4,119 | ||||||||||||||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 55 | ||||||||||||||||||||||||
Total | 1,123 | 1,228 | 1,148 | 1,312 | 4,811 | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 1,130 | 4,174 | ||||||||||||||||||||||||
Services | 678 | 734 | 674 | 711 | 2,797 | 558 | 693 | 658 | 703 | 2,612 | 613 | 2,307 | ||||||||||||||||||||||||
TOTAL | 1,801 | 1,962 | 1,822 | 2,023 | 7,608 | 1,524 | 1,916 | 1,810 | 2,189 | 7,439 | 1,743 | 6,481 | ||||||||||||||||||||||||
% of revenue | 56.5 | % | 55.0 | % | 55.5 | % | 52.8 | % | 54.8 | % | 55.9 | % | 57.4 | % | 57.0 | % | 57.2 | % | 56.9 | % | 58.6 | % | 58.5 | % | ||||||||||||
GROSS MARGIN | ||||||||||||||||||||||||||||||||||||
Products | 836 | 1,032 | 912 | 1,180 | 3,960 | 738 | 885 | 883 | 1,038 | 3,544 | 797 | 3,007 | ||||||||||||||||||||||||
% of product revenue | 42.7 | % | 45.7 | % | 44.3 | % | 47.4 | % | 45.1 | % | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 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 | 1,032 | 912 | 1,180 | 3,960 | 738 | 885 | 883 | 1,038 | 3,544 | 797 | 2,952 | ||||||||||||||||||||||||
% of product revenue | 42.7 | % | 45.7 | % | 44.3 | % | 47.4 | % | 45.1 | % | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 41.4 | % | 41.4 | % | ||||||||||||
Services gross margin | 552 | 572 | 549 | 632 | 2,305 | 464 | 536 | 484 | 601 | 2,085 | 434 | 1,637 | ||||||||||||||||||||||||
% of service revenue | 44.9 | % | 43.8 | % | 44.9 | % | 47.1 | % | 45.2 | % | 45.4 | % | 43.6 | % | 42.4 | % | 46.1 | % | 44.4 | % | 41.5 | % | 41.5 | % | ||||||||||||
Total excluding settlement | 1,388 | 1,604 | 1,461 | 1,812 | 6,265 | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,231 | 4,644 | ||||||||||||||||||||||||
% of revenue | 43.5 | % | 45.0 | % | 44.5 | % | 47.2 | % | 45.2 | % | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 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 | 1,604 | 1,461 | 1,812 | 6,265 | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,231 | 4,589 | ||||||||||||||||||||||||
% of revenue | 43.5 | % | 45.0 | % | 44.5 | % | 47.2 | % | 45.2 | % | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 41.4 | % | 41.5 | % | ||||||||||||
R&D | 473 | 507 | 514 | 514 | 2,008 | 439 | 541 | 523 | 543 | 2,046 | 472 | 1,785 | ||||||||||||||||||||||||
% of revenue | 14.8 | % | 14.2 | % | 15.7 | % | 13.4 | % | 14.5 | % | 16.1 | % | 16.2 | % | 16.5 | % | 14.2 | % | 15.7 | % | 15.9 | % | 16.1 | % | ||||||||||||
PURCHASED IN PROCESS R&D | 0 | 0 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 60 | 0 | 0 | ||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 2.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.5 | % | 0.0 | % | 0.0 | % | ||||||||||||
SG&A | 958 | 978 | 957 | 958 | 3,851 | 828 | 1,056 | 1,020 | 1,135 | 4,039 | 788 | 2,919 | ||||||||||||||||||||||||
% of revenue | 30.0 | % | 27.4 | % | 29.2 | % | 25.0 | % | 27.8 | % | 30.4 | % | 31.6 | % | 32.1 | % | 29.6 | % | 30.9 | % | 26.5 | % | 26.4 | % | ||||||||||||
RESTRUCTURING CHARGES | 21 | 26 | 35 | 15 | 97 | 12 | 10 | 36 | 226 | 284 | 86 | 262 | ||||||||||||||||||||||||
% of revenue | 0.7 | % | 0.7 | % | 1.1 | % | 0.4 | % | 0.7 | % | 0.4 | % | 0.3 | % | 1.1 | % | 6.0 | % | 2.2 | % | 2.9 | % | 2.4 | % | ||||||||||||
IMPAIRMENT EXPENSE | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 70 | 70 | 0 | 0 | ||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.8 | % | 0.5 | % | 0.0 | % | 0.0 | % | ||||||||||||
TOTAL OPERATING EXPENSES | 1,452 | 1,511 | 1,506 | 1,487 | 5,956 | 1,339 | 1,607 | 1,579 | 1,974 | 6,499 | 1,346 | 4,966 | ||||||||||||||||||||||||
% of revenue | 45.5 | % | 42.4 | % | 45.9 | % | 38.8 | % | 42.9 | % | 49.1 | % | 48.2 | % | 49.7 | % | 51.6 | % | 49.7 | % | 45.3 | % | 44.9 | % | ||||||||||||
OPERATING INCOME (LOSS) | (64 | ) | 93 | (45 | ) | 325 | 309 | (137 | ) | (186 | ) | (212 | ) | (335 | ) | (870 | ) | (115 | ) | (377 | ) | |||||||||||||||
Operating margin | -2.0 | % | 2.6 | % | -1.4 | % | 8.5 | % | 2.2 | % | -5.0 | % | -5.6 | % | -6.7 | % | -8.8 | % | -6.7 | % | -3.9 | % | -3.4 | % | ||||||||||||
Interest and other income, net | 42 | 63 | 50 | 59 | 214 | 44 | 25 | 26 | 19 | 114 | 32 | 133 | ||||||||||||||||||||||||
Gain (loss) on equity investments, net | 0 | 0 | 5 | 1 | 6 | 13 | 14 | 4 | (4 | ) | 27 | (1 | ) | 6 | ||||||||||||||||||||||
Settlement income | 0 | 0 | 54 | 0 | 54 | 0 | 0 | 0 | 54 | 54 | 0 | 54 | ||||||||||||||||||||||||
PRETAX INCOME (LOSS) | (22 | ) | 156 | 64 | 385 | 583 | (80 | ) | (147 | ) | (182 | ) | (266 | ) | (675 | ) | (84 | ) | (184 | ) | ||||||||||||||||
Pretax income (loss) margin | -0.7 | % | 4.4 | % | 1.9 | % | 10.0 | % | 4.2 | % | -2.9 | % | -4.4 | % | -5.7 | % | -6.9 | % | -5.2 | % | -2.8 | % | -1.7 | % | ||||||||||||
INCOME TAX PROVISION (BENEFIT) | 34 | 23 | (3 | ) | 56 | 110 | 43 | 76 | 35 | 35 | 189 | (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 | ) | 133 | 67 | 329 | 473 | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | 50 | (107 | ) | |||||||||||||||||
Growth vs. prior year (%) | 54.5 | % | 159.6 | % | 130.9 | % | 209.3 | % | 154.7 | % | 7.5 | % | -5675.0 | % | -675.0 | % | -702.0 | % | -707.5 | % | -93.6 | % | 72.4 | % | ||||||||||||
Growth vs. prior quarter (%) | 81.4 | % | 337.5 | % | -49.6 | % | 391.0 | % | -346.0 | % | -81.3 | % | 2.7 | % | -38.7 | % | 278.6 | % | ||||||||||||||||||
Net income (loss) margin | -1.8 | % | 3.7 | % | 2.0 | % | 8.6 | % | 3.4 | % | -4.5 | % | -6.7 | % | -6.8 | % | -7.9 | % | -6.6 | % | 1.7 | % | -1.0 | % | ||||||||||||
EPS (Diluted) (Reported) | (0.02 | ) | 0.04 | 0.02 | 0.09 | 0.13 | (0.04 | ) | (0.07 | ) | (0.06 | ) | (0.09 | ) | (0.25 | ) | 0.01 | (0.03 | ) | |||||||||||||||||
Growth vs. prior year (%) | 50.0 | % | 157.1 | % | 133.3 | % | 200.0 | % | 152.0 | % | 0.0 | % | -100.0 | % | -500.0 | % | -1000.0 | % | -733.3 | % | -95.7 | % | 75.0 | % | ||||||||||||
Growth vs. prior quarter (%) | 77.8 | % | 300.0 | % | -50.0 | % | 350.0 | % | -500.0 | % | -75.0 | % | 14.3 | % | -50.0 | % | 100.0 | % | ||||||||||||||||||
SHARES (CSE)(Diluted) | 3,497 | 3,626 | 3,661 | 3,632 | 3,606 | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,410 | 3,368 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,512 | 3,540 | 3,554 | 3,534 | 3,534 | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 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 | Q3 | Q4 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q4 | FY05 | ||||||||||||||||||||||||
REVENUE BY GEOGRAPHY*** | ||||||||||||||||||||||||||||||||||||
UNITED STATES ($M) | 1,361 | 1,415 | 1,283 | 1,582 | 5,641 | 1,168 | 1,400 | 1,357 | 1,610 | 5,535 | 1,175 | 4,392 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 16.5 | % | 1.1 | % | -5.5 | % | -1.7 | % | 1.9 | % | 5.7 | % | 23.9 | % | 38.2 | % | 37.0 | % | 26.0 | % | -13.3 | % | -7.9 | % | ||||||||||||
Growth vs. prior quarter (%) | -15.5 | % | 4.0 | % | -9.3 | % | 23.3 | % | -0.6 | % | 19.9 | % | -3.1 | % | 18.6 | % | 19.7 | % | ||||||||||||||||||
INTERNATIONAL AMERICAS ($M) | 197 | 230 | 195 | 241 | 863 | 138 | 190 | 185 | 242 | 755 | 171 | 590 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 42.8 | % | 21.1 | % | 5.4 | % | -0.4 | % | 14.3 | % | 25.5 | % | 15.2 | % | 28.5 | % | 41.5 | % | 28.0 | % | 8.2 | % | 5.0 | % | ||||||||||||
Growth vs. prior quarter (%) | -18.6 | % | 16.8 | % | -15.2 | % | 23.6 | % | -19.3 | % | 37.7 | % | -2.6 | % | 30.8 | % | 18.8 | % | ||||||||||||||||||
EMEA ($M) | 1,109 | 1,311 | 1,212 | 1,367 | 4,999 | 966 | 1,224 | 1,115 | 1,341 | 4,646 | 1,133 | 4,152 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 14.8 | % | 7.1 | % | 8.7 | % | 1.9 | % | 7.6 | % | -0.7 | % | 18.0 | % | 10.5 | % | 18.4 | % | 11.9 | % | 4.2 | % | 5.3 | % | ||||||||||||
Growth vs. prior quarter (%) | -17.3 | % | 18.2 | % | -7.6 | % | 12.8 | % | -14.7 | % | 26.7 | % | -8.9 | % | 20.3 | % | 12.3 | % | ||||||||||||||||||
APAC ($M) | 522 | 610 | 593 | 645 | 2,370 | 454 | 523 | 520 | 635 | 2,132 | 495 | 1,936 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 15.0 | % | 16.6 | % | 14.0 | % | 1.6 | % | 11.2 | % | 3.2 | % | 2.8 | % | 5.7 | % | 28.3 | % | 10.1 | % | -2.9 | % | 1.2 | % | ||||||||||||
Growth vs. prior quarter (%) | -17.8 | % | 16.9 | % | -2.8 | % | 8.8 | % | -8.3 | % | 15.2 | % | -0.6 | % | 22.1 | % | 0.6 | % | ||||||||||||||||||
% of Total Revenue | ||||||||||||||||||||||||||||||||||||
UNITED STATES (%) | 42.7 | % | 39.7 | % | 39.1 | % | 41.3 | % | 40.7 | % | 42.8 | % | 42.0 | % | 42.7 | % | 42.1 | % | 42.4 | % | 39.6 | % | 39.7 | % | ||||||||||||
INTERNATIONAL AMERICAS (%) | 6.2 | % | 6.4 | % | 5.9 | % | 6.3 | % | 6.2 | % | 5.1 | % | 5.7 | % | 5.8 | % | 6.3 | % | 5.8 | % | 5.7 | % | 5.3 | % | ||||||||||||
EMEA (%) | 34.7 | % | 36.8 | % | 36.9 | % | 35.6 | % | 36.0 | % | 35.4 | % | 36.6 | % | 35.1 | % | 35.0 | % | 35.5 | % | 38.1 | % | 37.5 | % | ||||||||||||
APAC (%) | 16.4 | % | 17.1 | % | 18.1 | % | 16.8 | % | 17.1 | % | 16.7 | % | 15.7 | % | 16.4 | % | 16.6 | % | 16.3 | % | 16.6 | % | 17.5 | % | ||||||||||||
PRODUCTS AND SERVICES REVENUE | ||||||||||||||||||||||||||||||||||||
COMPUTER SYSTEMS PRODUCTS ($M) | 1,468 | 1,634 | 1,500 | 1,853 | 6,455 | 1,274 | 1,438 | 1,474 | 1,811 | 5,997 | 1,576 | 5,826 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 15.2 | % | 13.6 | % | 1.8 | % | 2.3 | % | 7.6 | % | -5.9 | % | -4.5 | % | 6.0 | % | 14.9 | % | 2.9 | % | -3.8 | % | -0.5 | % | ||||||||||||
Growth vs. prior quarter (%) | -18.9 | % | 11.3 | % | -8.2 | % | 23.5 | % | -19.2 | % | 12.9 | % | 2.5 | % | 22.9 | % | 13.3 | % | ||||||||||||||||||
DATA MANAGEMENT PRODUCTS ($M) | 491 | 626 | 560 | 639 | 2,316 | 430 | 670 | 561 | 713 | 2,374 | 351 | 1,300 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 14.2 | % | -6.6 | % | -0.2 | % | -10.4 | % | -2.4 | % | 33.5 | % | 100.0 | % | 92.1 | % | 103.1 | % | 82.6 | % | -17.8 | % | -13.4 | % | ||||||||||||
Growth vs. prior quarter (%) | -31.1 | % | 27.5 | % | -10.5 | % | 14.1 | % | 22.5 | % | 55.8 | % | -16.3 | % | 27.1 | % | 20.2 | % | ||||||||||||||||||
SUPPORT SERVICES ($M) | 987 | 1,001 | 950 | 1,024 | 3,962 | 835 | 953 | 904 | 986 | 3,678 | 778 | 3,031 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 18.2 | % | 5.0 | % | 5.1 | % | 3.9 | % | 7.7 | % | 12.1 | % | 23.1 | % | 23.2 | % | 26.7 | % | 21.3 | % | -1.8 | % | 1.1 | % | ||||||||||||
Growth vs. prior quarter (%) | 0.1 | % | 1.4 | % | -5.1 | % | 7.8 | % | 7.3 | % | 14.1 | % | -5.1 | % | 9.1 | % | 6.0 | % | ||||||||||||||||||
PROFESSIONAL SERVICES & EDUCATIONAL SERVICES ($M) | 243 | 305 | 273 | 319 | 1,140 | 187 | 276 | 238 | 318 | 1,019 | 269 | 913 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 29.9 | % | 10.5 | % | 14.7 | % | 0.3 | % | 11.9 | % | -9.7 | % | 21.6 | % | 13.3 | % | 18.2 | % | 11.6 | % | 6.7 | % | 9.9 | % | ||||||||||||
Growth vs. prior quarter (%) | -23.6 | % | 25.5 | % | -10.5 | % | 16.8 | % | -30.5 | % | 47.6 | % | -13.8 | % | 33.6 | % | 28.1 | % | ||||||||||||||||||
NET BOOKINGS ($M)** | 3,036 | 3,603 | 3,238 | 3,909 | 13,786 | 2,413 | 3,018 | 2,680 | 3,376 | 11,487 | 3,078 | 11,043 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 25.8 | % | 19.4 | % | 20.8 | % | 15.8 | % | 20.0 | % | -1.6 | % | 1.4 | % | 5.7 | % | 9.7 | % | 4.0 | % | -3.2 | % | -2.4 | % | ||||||||||||
Growth vs. prior quarter (%) | -10.1 | % | 18.7 | % | -10.1 | % | 20.7 | % | -21.6 | % | 25.1 | % | -11.2 | % | 26.0 | % | 21.4 | % | ||||||||||||||||||
PRODUCT BACKLOG ($M)*, ** | 994 | 1,021 | 975 | 1,051 | 718 | 1,021 | 980 | 1,099 | 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. |
*** | Geographic revenue reported for FY06, Q1FY07 and Q2FY07 has been adjusted to reflect a correction in intercompany revenue to properly report country of origin. |
BALANCE SHEETS** | FY 2007 | FY 2006 | FY 2005 | ||||||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | ||||||||||||||||||||||||||
CASH & ST INVESTMENTS | 3,971 | 3,456 | 4,114 | 4,582 | 2,501 | 2,449 | 2,872 | 4,065 | 3,396 | ||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET | 2,036 | 2,331 | 2,458 | 2,964 | 2,087 | 2,289 | 2,301 | 2,702 | 2,231 | ||||||||||||||||||||||||||
RAW MATERIALS | 119 | 126 | 106 | 125 | 82 | 95 | 49 | 68 | 48 | ||||||||||||||||||||||||||
WORK IN PROCESS | 92 | 106 | 101 | 95 | 183 | 134 | 125 | 97 | 121 | ||||||||||||||||||||||||||
FINISHED GOODS | 373 | 373 | 360 | 304 | 286 | 321 | 400 | 375 | 262 | ||||||||||||||||||||||||||
TOTAL INVENTORIES | 584 | 605 | 567 | 524 | 551 | 550 | 574 | 540 | 431 | ||||||||||||||||||||||||||
OTHER CURRENT ASSETS | 961 | 970 | 1,023 | 1,258 | 998 | 933 | 966 | 966 | 1,133 | ||||||||||||||||||||||||||
TOTAL CURRENT ASSETS | 7,552 | 7,362 | 8,162 | 9,328 | 6,137 | 6,221 | 6,713 | 8,273 | 7,191 | ||||||||||||||||||||||||||
PP&E, NET | 1,583 | 1,579 | 1,586 | 1,533 | 1,901 | 1,914 | 1,880 | 1,812 | 1,769 | ||||||||||||||||||||||||||
GOODWILL | 2,566 | 2,571 | 2,571 | 2,514 | 2,466 | 2,472 | 2,487 | 2,610 | 441 | ||||||||||||||||||||||||||
LT MARKETABLE DEBT SECURITIES | 700 | 1,381 | 1,372 | 1,360 | 2,032 | 1,827 | 1,557 | 783 | 4,128 | ||||||||||||||||||||||||||
OTHER NON-CURRENT ASSETS | 1,493 | 1,409 | 1,359 | 1,103 | 1,938 | 1,874 | 1,733 | 1,604 | 661 | ||||||||||||||||||||||||||
TOTAL ASSETS | 13,894 | 14,302 | 15,050 | 15,838 | 14,474 | 14,308 | 14,370 | 15,082 | 14,190 | ||||||||||||||||||||||||||
SHORT TERM BORROWINGS | 2 | 1 | 1 | 1 | 512 | 508 | 505 | 503 | 0 | ||||||||||||||||||||||||||
ACCOUNTS PAYABLE | 1,292 | 1,331 | 1,214 | 1,428 | 1,091 | 1,214 | 1,315 | 1,446 | 1,167 | ||||||||||||||||||||||||||
ACCRUED LIABILITIES & OTHER | 1,968 | 2,026 | 1,925 | 1,949 | 2,147 | 1,905 | 1,918 | 2,228 | 1,951 | ||||||||||||||||||||||||||
DEFERRED REVENUES | 1,695 | 1,631 | 1,895 | 2,073 | 1,507 | 1,541 | 1,684 | 1,988 | 1,648 | ||||||||||||||||||||||||||
TOTAL CURRENT LIABILITIES | 4,957 | 4,989 | 5,035 | 5,451 | 5,257 | 5,168 | 5,422 | 6,165 | 4,766 | ||||||||||||||||||||||||||
LT DEBT | 582 | 579 | 1,270 | 1,264 | 603 | 593 | 585 | 575 | 1,123 | ||||||||||||||||||||||||||
LT DEFERRED REVENUES | 558 | 567 | 589 | 659 | 549 | 469 | 472 | 506 | 544 | ||||||||||||||||||||||||||
OTHER NON-CURRENT OBLIGATIONS | 1,388 | 1,396 | 1,264 | 1,285 | 1,410 | 1,585 | 1,504 | 1,492 | 1,083 | ||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | 6,409 | 6,771 | 6,892 | 7,179 | 6,655 | 6,493 | 6,387 | 6,344 | 6,674 | ||||||||||||||||||||||||||
TOTAL LIABILITIES & SE | 13,894 | 14,302 | 15,050 | 15,838 | 14,474 | 14,308 | 14,370 | 15,082 | 14,190 | ||||||||||||||||||||||||||
CASH FLOW** | Q1 | Q2 | Q3 | Q4 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q4 | FY05 | |||||||||||||||||||||||
OPERATING ACTIVITIES | 123 | 129 | 142 | 564 | 958 | 224 | (191 | ) | 197 | 410 | 640 | 195 | 369 | ||||||||||||||||||||||
INVESTING ACTIVITIES | 143 | (1,013 | ) | (110 | ) | (97 | ) | (1,077 | ) | (770 | ) | (214 | ) | 217 | 1,346 | 579 | 238 | (425 | ) | ||||||||||||||||
FINANCING ACTIVITIES | (473 | ) | 135 | 647 | (139 | ) | 170 | 3 | 90 | 34 | 172 | 299 | 84 | (34 | ) | ||||||||||||||||||||
KEY METRICS | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | ||||||||||||||||||||||||||
INVENTORY TURNS (hist.) | 13.6 | 13.4 | 13.6 | 14.3 | 13.4 | 13.7 | 10.8 | 15.3 | 14.5 | ||||||||||||||||||||||||||
INVENTORY TURNS-PRODUCT ONLY (hist.) | 8.8 | 8.6 | 8.7 | 9.0 | 8.6 | 8.8 | 6.9 | 9.9 | 9.3 | ||||||||||||||||||||||||||
DAYS SALES OUTSTANDING | 57 | 59 | 67 | 70 | 69 | 62 | 65 | 64 | 68 | ||||||||||||||||||||||||||
DAYS PAYABLES OUTSTANDING | (65 | ) | (61 | ) | (60 | ) | (64 | ) | (64 | ) | (57 | ) | (65 | ) | (59 | ) | (60 | ) | |||||||||||||||||
DAYS OF SUPPLY ON HAND | 29 | 28 | 28 | 23 | 33 | 26 | 29 | 22 | 22 | ||||||||||||||||||||||||||
L-T DEBT/EQUITY (%) | 9.1 | % | 8.6 | % | 18.4 | % | 17.6 | % | 9.1 | % | 9.1 | % | 9.2 | % | 9.1 | % | 16.8 | % | |||||||||||||||||
ROE (12 mo. avg.)(%) | -12.4 | % | -6.8 | % | -2.4 | % | 6.9 | % | -1.5 | % | -4.9 | % | -7.8 | % | -13.4 | % | -1.6 | % | |||||||||||||||||
BOOK VALUE PER SHARE ($) | 1.82 | 1.91 | 1.94 | 2.03 | 1.95 | 1.89 | 1.84 | 1.81 | 1.96 | ||||||||||||||||||||||||||
PRICE PER SHARE @ CLOSE | 4.95 | 5.42 | 6.01 | 5.26 | 3.87 | 4.36 | 4.97 | 4.15 | 3.73 | ||||||||||||||||||||||||||
ROA (12 mo. avg.)(%) | -5.5 | % | -3.1 | % | -1.1 | % | 3.2 | % | -0.7 | % | -2.3 | % | -3.6 | % | -5.9 | % | -0.8 | % | |||||||||||||||||
DEPREC. & AMORT. ($M) | 204 | 214 | 209 | 203 | 189 | 265 | 228 | 224 | 198 | ||||||||||||||||||||||||||
CAPITAL INVESTMENTS, NET ($M)* | (160 | ) | 81 | 152 | (73 | ) | 48 | 82 | 63 | 122 | 58 | ||||||||||||||||||||||||
NUMBER OF EMPLOYEES | 36,250 | 34,667 | 34,494 | 34,219 | 38,588 | 38,802 | 38,312 | 38,061 | 31,117 | ||||||||||||||||||||||||||
REV. PER EMP. (12 mo.)($K) | 373.3 | 397.3 | 402.0 | 405.4 | 289.4 | 300.6 | 314.8 | 343.3 | 355.8 | ||||||||||||||||||||||||||
GM PER EMP. (12mo.)($K) | 160.4 | 173.2 | 176.6 | 183.1 | 122.3 | 127.3 | 134.6 | 147.9 | 147.5 | ||||||||||||||||||||||||||
OP EXP AS % OF REV (12mo.) | 48.9 | % | 47.4 | % | 46.5 | % | 42.9 | % | 45.8 | % | 47.3 | % | 48.1 | % | 49.7 | % | 44.9 | % | |||||||||||||||||
NET INCOME (LOSS) PER EMP. (12mo.)($K) | (22.0 | ) | (12.7 | ) | (4.6 | ) | 13.82 | (2.5 | ) | (8.4 | ) | (13.2 | ) | (22.7 | ) | (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. |
** | Certain numbers presented in the Q1-Q3 fiscal 2007 balance sheets and statements of cash flows have been reclassified from other non-current assets to other current assets and investing activities to operating activities, respectively, to reflect a change in associated classification. |
NON-GAAP CALCULATION OF NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS | FY2007 | FY 2006 | FY 2005 | |||||||||||||||||||||||||||||||||
(in millions except per share amounts) | Q1 | Q2 | Q3 | Q4 | FY07 | Q1 | Q2 | Q3 | Q4 | FY06 | Q4*** | FY05* | ||||||||||||||||||||||||
GAAP net income (loss)****, ***** | (56 | ) | 133 | 67 | 329 | 473 | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | 50 | (107 | ) | |||||||||||||||||
Purchased in-process research and development | 0 | 0 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 60 | 0 | 0 | ||||||||||||||||||||||||
Restructuring and related impairment of long-lived assets | 21 | 26 | 35 | 15 | 97 | 12 | 10 | 36 | 226 | 284 | 86 | 262 | ||||||||||||||||||||||||
Loss (gain) on equity investments, net | 0 | 0 | (5 | ) | (1 | ) | (6 | ) | (13 | ) | (14 | ) | (4 | ) | 4 | (27 | ) | 1 | (6 | ) | ||||||||||||||||
Impairment expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 70 | 70 | 0 | 0 | ||||||||||||||||||||||||
Settlement income | 0 | 0 | (54 | ) | 0 | (54 | ) | 0 | 0 | 0 | (54 | ) | (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 | 0 | 0 | (34 | ) | |||||||||||||||||||||||
Related tax effects | (7 | ) | (4 | ) | (8 | ) | (5 | ) | (24 | ) | (4 | ) | (3 | ) | (4 | ) | (8 | ) | (19 | ) | (6 | ) | (26 | ) | ||||||||||||
Net income (loss) excluding special items | (42 | ) | 155 | 35 | 338 | 486 | (68 | ) | (230 | ) | (189 | ) | (63 | ) | (550 | ) | 131 | 90 | ||||||||||||||||||
Growth vs. prior year (%) | 38.2 | % | 167.4 | % | 118.5 | % | 636.5 | % | 188.4 | % | -351.9 | % | -1869.2 | % | 133.3 | % | -148.1 | % | -711.1 | % | 174.4 | % | 111.4 | % | ||||||||||||
EPS (Diluted) excluding special items | (0.01 | ) | 0.04 | 0.01 | 0.09 | 0.13 | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.02 | ) | (0.16 | ) | 0.04 | 0.03 | ||||||||||||||||||
Growth vs. prior year (%) | 50.0 | % | 157.1 | % | 116.7 | % | 550.0 | % | 176.5 | % | -300.0 | % | -100.0 | % | -200.0 | % | -150.0 | % | 633.3 | % | 180.0 | % | 112.5 | % | ||||||||||||
SHARES (CSE)(Diluted) | 3,497 | 3,626 | 3,661 | 3,632 | 3,606 | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,410 | 3,368 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,512 | 3,540 | 3,554 | 3,534 | 3,534 | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 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 June 30, 2007, April 1, 2007, December 31, 2006, and October 1, 2006 included $48 million, $50 million, $58 million, and $58 million Of stock-based compensation expense or approximately $0.01 per share, $0.01 per share, $0.02 per share and $0.02 per share, respectively. Net income (loss) for the three months ended June 30, 2007, March 26, 2006, December 25, 2005 and 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 June 30, 2007, April 1, 2007, December 31, 2006 and October 1, 2006, included $70 million, $75 million, $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, $0.02 per share, $0.02 per share and $0.02 per share, respectively. Net loss for the three months ended June 30, 2006, March 26, 2006, December 25, 2005 and 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.