Exhibit 99.1
PMC-Sierra Reports Fourth Quarter 2007 Results
-- Q4 2007 Net revenues | | | | $123.6 million |
-- Q4 2007 GAAP Net loss | | | | $(5.1) million or $(0.02) per share |
-- Q4 2007 Non-GAAP Net income | | | | $20.1 million or $0.09 per share |
SANTA CLARA, Calif.--(BUSINESS WIRE)--PMC-Sierra, Inc. (Nasdaq:PMCS), a leading provider of high-speed broadband communications and storage semiconductors, today reported results for the fourth quarter and year ended December 30th, 2007.
Net revenues in the fourth quarter of 2007 were $123.6 million compared with $117.5 million in the third quarter of 2007, and $101.9 million in the fourth quarter of the prior year. The revenues in the fourth quarter of 2007 represent a quarterly sequential increase of 5% and a year-over-year increase of 21%.
Net loss in the fourth quarter of 2007 on a GAAP basis was $5.1 million (GAAP loss per share of $0.02) compared with GAAP net loss of $5.9 million (GAAP loss per share of $0.03) in the third quarter of 2007. Non-GAAP net income in the fourth quarter of 2007 was $20.1 million (non-GAAP diluted net income per share of $0.09) compared with non-GAAP net income in the third quarter of 2007 of $19.1 million (non-GAAP diluted net income per share of $0.09).
Non-GAAP net income in the fourth quarter of 2007 excludes the following items: (i) $8.2 million in stock-based compensation expense; (ii) $9.8 million in amortization of purchased intangible assets; (iii) $2.6 million in restructuring costs including $1.9 million for asset impairment; (iv) $2.1 million foreign exchange loss on foreign denominated FIN 48 tax liabilities; and (v) $1.6 million income tax effect relating to the non-GAAP adjustments, off-set by $4.1 million of interest relating to the liability for unrecognized tax benefit of prior years.
“In the fourth quarter of 2007, PMC experienced its best operational results in years,” said Bob Bailey, Chairman and CEO of PMC-Sierra. “We had strong demand for most of our diversified portfolio, especially enterprise storage and printer-related products.”
For the year ended December 30, 2007, net revenues were $449.4 million compared with $425.0 million for the year ended December 31, 2006, an increase of 6% year-over-year. GAAP net loss in 2007 was $49.1 million (GAAP net loss per share of $0.23) compared with GAAP net loss of $99.9 million (GAAP net loss per share of $0.49) for the prior year. Non-GAAP net income in 2007 was $51.0 million (non-GAAP diluted net income per share of $0.23) compared with the prior year’s non-GAAP net income of $57.9 million (non-GAAP diluted net income per share of $0.28).
For a full reconciliation of GAAP net loss to non-GAAP net income, please refer to the schedule on page 6 and 7 of this press release. The Company believes the additional non-GAAP measures provided are useful to investors for the purpose of financial analysis. Management uses the non-GAAP measures internally to evaluate its operating performance before gains, losses and other charges that are considered by management to be outside of the Company’s core operating results, as well as used to plan for the Company’s future periods. Non-GAAP measures are however neither stated in accordance with, nor are they a substitute for, GAAP measures.
The Company made the following product announcements in the fourth quarter of 2007:
- We announced the Tachyon® QE8 Fibre Channel protocol controller that enables a new class of networked storage systems. Storage networks are transitioning to 8Gbit/s connectivity to remove bandwidth bottlenecks created by data consolidation through virtualization and Web 2.0 fixed content storage. PMC-Sierra’s Tachyon QE8 specifically addresses these new applications by doubling the performance of existing solutions and adding a host of advanced features, including PCI-Express 2.0 Gen-II, Multiple Outbound Read Requests and advanced 8Gbit/s serial link monitoring. The Tachyon QE8 is fully interoperable with PMC-Sierra’s family of 4Gbit/s Fibre Channel products allowing storage OEMs to increase performance, decrease power and preserve years of software investment.
- We also announced the availability of a new multi-service fiber access gateway device with integrated ITU-T G.984 GPON interface. The MSP7160 integrates all of the functionality required for a GPON residential gateway, and leverages PMC-Sierra’s proven GPON interoperability and software layers to improve performance and reduce OEM time-to-market. This new device enables carriers to expand HD video service offerings to consumers through the mass deployment of high bandwidth broadband for applications such as video and picture sharing, P2P and data storage. The MSP7160 delivers gigabit-per-second IPv4 or IPv6 routing, Network Address Translation and Quality of Service features. It includes integrated multi-channel VoIP terminal adapter capabilities, GPON MAC and SERDES functions with proven interoperability.
Fourth Quarter 2007 Conference Call
Management will review the fourth quarter 2007 results and provide guidance for the first quarter of 2008 during a conference call at 2:30 pm Pacific Time/5:30 pm Eastern Time on January 24th, 2008. The conference call webcast will be accessible under the Financial Events and Calendar section at http://investor.pmc-sierra.com/. To listen to the conference call live by telephone, dial 416-642-5212 approximately ten minutes before the start time. A telephone playback will be available after the completion of the call and can be accessed at 647-436-0148 using the access code 1498394. A replay of the webcast will be available for five business days.
First Quarter 2008 Conference Call
PMC-Sierra is planning on releasing its results for the first quarter of 2008 on April 17, 2008. A conference call will be held on the day of the release to review the quarter and provide an outlook for the second quarter of 2008.
About PMC-Sierra
PMC-SierraTM is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers, and fiber access gateway equipment. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol. For more information, visit www.pmc-sierra.com.
© Copyright PMC-Sierra, Inc. 2008. All rights reserved. PMC and Tachyon are registered trademarks of PMC-Sierra, Inc. in the United States and other countries. PMC-SIERRA, PMCS and “Enabling connectivity. Empowering people.” are trademarks of PMC-Sierra, Inc. Other product and company names mentioned herein may be trademarks of their respective owners.
| PMC-Sierra, Inc. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (in thousands, except for per share amounts) |
| (unaudited) |
| | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | December 30, | | September 30, | | December 31, | | December 30, | | December 31, |
| | | 2007 | | | | 2007 | | | | 2006 | | | | 2007 | | | | 2006 | |
| | | | | | | | | | |
| Net revenues | | $ | 123,569 | | | $ | 117,455 | | | $ | 101,917 | | | $ | 449,381 | | | $ | 424,992 | |
| Cost of revenues | | | 43,205 | | | | 39,871 | | | | 37,125 | | | | 158,297 | | | | 146,456 | |
| Gross profit | | | 80,364 | | | | 77,584 | | | | 64,792 | | | | 291,084 | | | | 278,536 | |
| | | | | | | | | | |
| | | | | | | | | | |
Other costs and expenses: | | | | | | | | | | |
| Research and development | | | 37,418 | | | | 35,557 | | | | 41,713 | | | | 159,134 | | | | 158,661 | |
| Selling, general and administrative | | | 24,493 | | | | 24,124 | | | | 26,362 | | | | 100,486 | | | | 102,363 | |
| Amortization of purchased intangible assets | | | 9,836 | | | | 9,836 | | | | 10,136 | | | | 39,343 | | | | 33,381 | |
| In-process research and development | | | - | | | | - | | | | - | | | | - | | | | 35,300 | |
| Restructuring costs and other charges | | | 2,593 | | | | 1,564 | | | | 453 | | | | 14,837 | | | | 6,119 | |
| Income (loss) from operations | | | 6,024 | | | | 6,503 | | | | (13,872 | ) | | | (22,716 | ) | | | (57,288 | ) |
| | | | | | | | | | |
| Other income (expense): | | | | | | | | | | |
| Interest income, net | | | 2,877 | | | | 2,728 | | | | 2,297 | | | | 9,914 | | | | 8,979 | |
| Foreign exchange gain (loss) | | | (2,511 | ) | | | (7,052 | ) | | | 3,508 | | | | (18,486 | ) | | | (109 | ) |
| Amortization of debt issue costs | | | (242 | ) | | | (242 | ) | | | (242 | ) | | | (968 | ) | | | (968 | ) |
| Loss on investments, net | | | - | | | | - | | | | - | | | | - | | | | (1,269 | ) |
| Income (loss) before provision for income taxes | | | 6,148 | | | | 1,937 | | | | (8,309 | ) | | | (32,256 | ) | | | (50,655 | ) |
| | | | | | | | | | |
| Provision for income taxes | | | (11,229 | ) | | | (7,877 | ) | | | (33,891 | ) | | | (16,848 | ) | | | (49,237 | ) |
| Net loss | | $ | (5,081 | ) | | $ | (5,940 | ) | | $ | (42,200 | ) | | $ | (49,104 | ) | | $ | (99,892 | ) |
| | | | | | | | | | |
| Net loss per common share - basic and diluted | | $ | (0.02 | ) | | $ | (0.03 | ) | | $ | (0.20 | ) | | $ | (0.23 | ) | | $ | (0.49 | ) |
| | | | | | | | | | |
| Shares used in per share calculation - basic and diluted | | | 218,912 | | | | 216,837 | | | | 212,295 | | | | 216,330 | | | | 203,470 | |
| As a supplement to the Company's condensed consolidated statements of operations presented on a generally accepted accounting principles (GAAP) basis, the Company provides additional non-GAAP measures for net income (loss) and net income (loss) per share in its press release. |
| |
| A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses these measures internally to evaluate the Company's in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company's core operating results. In addition, the measures are used for planning and forecasting of the Company's future periods. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results. |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| PMC-Sierra, Inc. |
| Reconciliation of GAAP net loss to Non-GAAP net income |
| (in thousands, except for per share amounts) |
| (unaudited) |
| | | | | | | | | | | | |
| | Three Months Ended | | Three Months Ended |
| | December 30, 2007 | | December 31, 2006 |
| | Reported | Non-GAAP Items | Non-GAAP | | Reported | Non-GAAP Items | Non-GAAP |
| | | | | | | | | | | | |
| Net revenues | | $ | 123,569 | | | | - | | | $ | 123,569 | | | $ | 101,917 | | | | - | | | $ | 101,917 | |
| | | | | | | | | | | | |
| Cost of revenues | | | 43,205 | | | | (344 | ) | (1 | ) | | 42,861 | | | | 37,125 | | | | (517 | ) | (1 | ) | | 36,608 | |
| | | | | | | | | | | | |
| Gross profit | | | 80,364 | | | | 344 | | | | 80,708 | | | | 64,792 | | | | 517 | | | | 65,309 | |
| | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| Research and development | | | 37,418 | | | | (4,091 | ) | (1 | ) | | 33,327 | | | | 41,713 | | | | (5,472 | ) | (1 | ) | | 36,241 | |
| Selling, general and administrative | | | 24,493 | | | | (3,727 | ) | (1 | ) | | 20,766 | | | | 26,362 | | | | (5,395 | ) | (1 | ) | | 20,967 | |
| Amortization of purchased intangible assets | | | 9,836 | | | | (9,836 | ) | (5 | ) | | - | | | | 10,136 | | | | (10,136 | ) | (5 | ) | | - | |
| Restructuring costs and other charges | | | 2,593 | | | | (2,593 | ) | (2 | ) | | - | | | | 453 | | | | (453 | ) | (4 | ) | | - | |
| Income (loss) from operations | | | 6,024 | | | | 20,591 | | | | 26,615 | | | | (13,872 | ) | | | 21,973 | | | | 8,101 | |
| | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | |
| Interest income, net | | | 2,877 | | | | - | | | | 2,877 | | | | 2,297 | | | | - | | | | 2,297 | |
| Foreign exchange gain (loss) | | | (2,511 | ) | | | 2,146 | | (3 | ) | | (365 | ) | | | 3,508 | | | | (3,521 | ) | (3 | ) | | (13 | ) |
| Amortization of debt issue costs | | | (242 | ) | | | - | | | | (242 | ) | | | (242 | ) | | | - | | | | (242 | ) |
| Income (loss) before provision for income taxes | | | 6,148 | | | | 22,737 | | | | 28,885 | | | | (8,309 | ) | | | 18,452 | | | | 10,143 | |
| | | | | | | | | | | | |
| (Provision for) recovery of income taxes | | | (11,229 | ) | | | 2,488 | | (6 | ) | | (8,741 | ) | | | (33,891 | ) | | | 28,446 | | (7 | ) | | (5,445 | ) |
| Net income (loss) | | $ | (5,081 | ) | | $ | 25,225 | | | $ | 20,144 | | | $ | (42,200 | ) | | $ | 46,898 | | | $ | 4,698 | |
| | | | | | | | | | | | |
| Net income (loss) per common share - basic | | $ | (0.02 | ) | | | | $ | 0.09 | | | $ | (0.20 | ) | | | | $ | 0.02 | |
| Net income (loss) per common share - diluted | | $ | (0.02 | ) | | | | $ | 0.09 | | | $ | (0.20 | ) | | | | $ | 0.02 | |
| | | | | | | | | | | | |
| Shares used in per share calculation - basic | | | 218,912 | | | | | | 218,912 | | | | 212,295 | | | | | | 212,295 | |
| Shares used in per share calculation - diluted | | | 218,912 | | | | | | 221,468 | | | | 212,295 | | | | | | 214,332 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Non-GAAP adjustments consist of: |
| (1) Stock based compensation |
| (2) $2.6 million restructuring costs including $1.9 million for asset impairment, $0.6 million for excess facilities, and $0.1 million for payroll-related costs |
| (3) Foreign exchange gain (loss) on Canadian taxes |
| (4) $0.5 million restructuring costs related to vacating the Ottawa facility |
| (5) Amortization of purchased intangible assets |
(6) $1.6 million income tax effect relating to the non-GAAP adjustments, off-set by $4.1 million of interest relating to the liability for unrecognized tax benefit of prior years |
| (7) $29.9 million increase in our estimated tax provision for previous years as a result of a written communication received in 2007 from tax authorities, and $1.4 million income tax effect relating to these non-GAAP adjustments |
| PMC-Sierra, Inc. |
| Reconciliation of GAAP net loss to Non-GAAP net income |
| (in thousands, except for per share amounts) |
| (unaudited) |
| | | | | | | | | | | | |
| | Twelve Months Ended | | Twelve Months Ended |
| | December 30, 2007 | | December 31, 2006 |
| | Reported | Non-GAAP Items | Non-GAAP | | Reported | Non-GAAP Items | Non-GAAP |
| | | | | | | | | | | | |
| Net revenues | | $ | 449,381 | | | | - | | | $ | 449,381 | | | $ | 424,992 | | | | - | | | $ | 424,992 | |
| | | | | | | | | | | | |
| Cost of revenues | | | 158,297 | | | | (1,691 | ) | (1 | ) | | 156,606 | | | | 146,456 | | | | (10,758 | ) | (6 | ) | | 135,698 | |
| Gross profit | | | 291,084 | | | | 1,691 | | | | 292,775 | | | | 278,536 | | | | 10,758 | | | | 289,294 | |
| | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| Research and development | | | 159,134 | | | | (16,563 | ) | (1 | ) | | 142,571 | | | | 158,661 | | | | (16,210 | ) | (1 | ) | | 142,451 | |
| Selling, general and administrative | | | 100,486 | | | | (14,867 | ) | (2 | ) | | 85,619 | | | | 102,363 | | | | (22,466 | ) | (7 | ) | | 79,897 | |
| Amortization of purchased intangible assets | | | 39,343 | | | | (39,343 | ) | (5 | ) | | - | | | | 33,381 | | | | (33,381 | ) | (5 | ) | | - | |
| In-process research and development | | | - | | | | - | | | | - | | | | 35,300 | | | | (35,300 | ) | (8 | ) | | - | |
| Restructuring costs and other charges | | | 14,837 | | | | (14,837 | ) | (3 | ) | | - | | | | 6,119 | | | | (6,119 | ) | (9 | ) | | - | |
Income (loss) from operations | | | (22,716 | ) | | | 87,301 | | | | 64,585 | | | | (57,288 | ) | | | 124,234 | | | | 66,946 | |
| | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | |
| Interest income, net | | | 9,914 | | | | - | | | | 9,914 | | | | 8,979 | | | | - | | | | 8,979 | |
| Foreign exchange gain (loss) | | | (18,486 | ) | | | 18,222 | | (4 | ) | | (264 | ) | | | (109 | ) | | | (447 | ) | (4 | ) | | (556 | ) |
| Amortization of debt issue costs | | | (968 | ) | | | - | | | | (968 | ) | | | (968 | ) | | | - | | | | (968 | ) |
| Loss on investments | | | - | | | | - | | | | - | | | | (1,269 | ) | | | 1,269 | | (10 | ) | | - | |
Income (loss) before provision for income taxes | | | (32,256 | ) | | | 105,523 | | | | 73,267 | | | | (50,655 | ) | | | 125,056 | | | | 74,401 | |
| | | | | | | | | | | | |
| (Provision for) recovery of income taxes | | | (16,848 | ) | | | (5,384 | ) | (11 | ) | | (22,232 | ) | | | (49,237 | ) | | | 32,693 | | (12 | ) | | (16,544 | ) |
| Net income (loss) | | $ | (49,104 | ) | | $ | 100,139 | | | $ | 51,035 | | | $ | (99,892 | ) | | $ | 157,749 | | | $ | 57,857 | |
| | | | | | | | | | | | |
| Net income (loss) per common share - basic | | $ | (0.23 | ) | | | | $ | 0.24 | | | $ | (0.49 | ) | | | | $ | 0.28 | |
| Net income (loss) per common share - diluted | | $ | (0.23 | ) | | | | $ | 0.23 | | | $ | (0.49 | ) | | | | $ | 0.28 | |
| | | | | | | | | | | | |
| Shares used in per share calculation - basic | | | 216,330 | | | | | | 216,330 | | | | 203,470 | | | | | | 203,470 | |
| Shares used in per share calculation - diluted | | | 216,330 | | | | | | 218,569 | | | | 203,470 | | | | | | 209,542 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Non-GAAP adjustments consist of: |
| (1) Stock based compensation expense |
(2) Stock based compensation expense of $17.1 million and $2.2 million reversal of a payroll tax accrual in a foreign jurisdiction |
| (3) $14.8 million restructuring costs including $9.4 million for severance, and $3.0 million for excess facilities, and $2.4 million for contract termination and asset impairment |
| (4) Foreign exchange gain (loss) on Canadian taxes |
| (5) Amortization of purchased intangible assets |
| (6) Stock based compensation expense of $1.8 million and purchase accounting adjustments of $8.9 million |
| (7) Stock based compensation expense of $19.9 million; acquisition costs of $0.2 million and $2.4 million payroll tax in a foreign jurisdiction |
| (8) $35.3 million in charges for in-process research and development from the purchases of Passave and the Avago Storage Semiconductor Businesses |
| (9) $6.1 million in restructuring comprised of $1.6 million net provision for excess facilities, $4.2 million additional severance, and $0.3 million in contract termination and asset impairment |
| (10) $1.3 million net loss on investments including a $3.2 million write-down, offset by $1.9 million gains on sales of investment |
(11) $10.7 million income tax effect of the non-GAAP adjustments, $4.0 million recovery of prior years' income taxes, and $3.8 million recovery of future income taxes, off-set by $13.1 million of interest relating to the liability for unrecognized tax benefit of prior years |
| (12) $29.9 million increase in our estimated tax provision for previous years as a result of a written communication received in 2007 from tax authorities, $7.0 million withholding and other taxes on repatriation of funds, and $4.2 million income tax effect of these non-GAAP adjustments |
| PMC-Sierra, Inc. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in thousands) |
| (unaudited) |
| | | | |
| | December 30, | | December 31, |
| | | 2007 | | | | 2006 | |
| | | | |
| ASSETS: | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 364,922 | | | $ | 258,914 | |
| Accounts receivable, net | | | 39,362 | | | | 37,303 | |
| Inventories, net | | | 34,246 | | | | 34,505 | |
| Prepaid expenses and other current assets | | | 16,266 | | | | 17,164 | |
| Income tax receivable | | | 2,365 | | | | - | |
| Total current assets | | | 457,161 | | | | 347,886 | |
| | | | |
| Property and equipment, net | | | 18,725 | | | | 18,904 | |
| Investments and other assets | | | 10,747 | | | | 14,653 | |
| Goodwill | | | 398,418 | | | | 395,943 | |
| Intangible assets, net | | | 187,126 | | | | 223,629 | |
| Deposits for wafer fabrication capacity | | | 5,145 | | | | 5,145 | |
| Deferred tax assets | | | 54,676 | | | | 397 | |
| | $ | 1,131,998 | | | $ | 1,006,557 | |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | |
| Current liabilities: | | | | |
| Accounts payable | | $ | 24,011 | | | $ | 19,074 | |
| Accrued liabilities | | | 53,617 | | | | 51,199 | |
| Income taxes payable | | | - | | | | 59,428 | |
| Deferred income taxes | | | 2,787 | | | | 2,042 | |
| Liability for unrecognized tax benefit | | | 71,586 | | | | - | |
| Accrued restructuring costs | | | 10,911 | | | | 12,657 | |
| Deferred income | | | 13,674 | | | | 11,340 | |
| Total current liabilities | | | 176,586 | | | | 155,740 | |
| | | | |
| 2.25% Senior convertible notes due October 15, 2025 | | | 225,000 | | | | 225,000 | |
| Long-term obligations | | | 958 | | | | - | |
| Deferred taxes and other tax liabilities | | | 23,023 | | | | 52,657 | |
| Liability for unrecognized tax benefit | | | 107,764 | | | | - | |
| | | | |
| PMC special shares convertible into 2,065 (2006 - 2,099) shares of common stock | | | | |
| | 2,671 | | | | 2,732 | |
| | | | |
| Stockholders' equity | | | | |
| Common stock and additional paid in capital | | | 1,395,183 | | | | 1,327,808 | |
| Accumulated other comprehensive income (loss) | | | 1,437 | | | | (1,127 | ) |
| Accumulated deficit | | | (800,624 | ) | | | (756,253 | ) |
| Total stockholders' equity | | | 595,996 | | | | 570,428 | |
| | $ | 1,131,998 | | | $ | 1,006,557 | |
PMC-Sierra, Inc. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in thousands) |
| (unaudited) |
| | | | |
| | Twelve Months Ended |
| | December 30, | | December 31, |
| | | 2007 | | | | 2006 | |
| | | | |
| Cash flows from operating activities: | | | | |
| Net loss | | $ | (49,104 | ) | | $ | (99,892 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | |
| | | |
| Stock-based compensation | | | 35,334 | | | | 37,908 | |
| In-process research and development | | | - | | | | 35,300 | |
| Depreciation and amortization | | | 55,774 | | | | 48,778 | |
| Impairment of purchased intangible assets | | | 1,855 | | | | - | |
| Loss on investments | | | - | | | | 1,269 | |
| Loss on disposal of property and equipment | | | 512 | | | | - | |
| Changes in operating assets and liabilities: | | | | |
| Accounts receivable | | | (2,059 | ) | | | 2,203 | |
| Inventories | | | (156 | ) | | | (6,181 | ) |
| Prepaid expenses and other current assets | | | 1,998 | | | | (15,416 | ) |
| Accounts payable and accrued liabilities | | | 6,933 | | | | (14,296 | ) |
| Deferred taxes and income taxes payable | | | 40,780 | | | | 44,664 | |
| Accrued restructuring costs | | | (1,595 | ) | | | (2,576 | ) |
| Deferred income | | | 2,334 | | | | 336 | |
| Net cash provided by operating activities | | | 92,606 | | | | 32,097 | |
| | | | |
| Cash flows from investing activities: | | | | |
| Acquisition of businesses, net of cash acquired | | | - | | | | (419,436 | ) |
| Proceeds from sales and maturities of short-term available-for-sale investments | | | - | | | | 222,357 | |
| Proceeds from sale of investments and other assets | | | - | | | | 5,445 | |
| Purchases of property and equipment | | | (9,824 | ) | | | (8,011 | ) |
| Purchases of intangible assets | | | (8,754 | ) | | | (5,144 | ) |
| Net cash provided by (used in) investing activities | | | (18,578 | ) | | | (204,789 | ) |
| | | | |
| Cash flows from financing activity: | | | | |
| Proceeds from issuance of common stock | | | 31,980 | | | | 26,040 | |
| Net cash provided by financing activity | | | 31,980 | | | | 26,040 | |
| | | | |
| Net increase (decrease) in cash and cash equivalents | | | 106,008 | | | | (146,652 | ) |
| Cash and cash equivalents, beginning of the year | | | 258,914 | | | | 405,566 | |
| Cash and cash equivalents, end of the year | | $ | 364,922 | | | $ | 258,914 | |
CONTACT:
PMC-Sierra, Inc.
Vice President & CFO
Mike Zellner, 1-408-988-1204
or
VP Marketing Communications
David Climie, 1-408-988-8276
or
Senior Manager, Communications
Susan Shaw, 1-408-988-8515
