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UNAUDITED PRO-FORMA CONDENSED CONSOLIDATED BALANCE SHEET EXHIBIT 99.1
AS OF JUNE 30, 2003
(In Thousands)
Net
Historical (a) (b) (c) (d) Adjustment Pro forma
---------- --- --- --- --- ---------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 5,085 $ 14,081 $(13,081) $ 7,522 $ (95) $ 8,427 $ 13,512
Short-term investments 44,782 - - 44,782
Accounts receivable, net 4,338 - - 4,338
Inventories 2,318 - - 2,318
Other current assets 734 - - - - 734
Assets held for sale 1,800 (1,800) (1,800) -
-------- -------- -------- -------- -------- -------- --------
Total current assets 59,057 12,281 (13,081) 7,522 (95) 6,627 65,684
Property and equipment, net 2,789 - - 2,789
Long-term investments and other 7,944 - - 7,944
Other long-term assets 333 - 333
- -
-------- -------- -------- -------- -------- -------- --------
Total assets 70,123 12,281 (13,081) 7,522 (95) 6,627 76,750
-------- -------- -------- -------- -------- -------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,974 $ - $ - $ - $ - $ - $ 7,974
Other current liabilities 8,332 - - 8,332
Income tax payable 1,580 1,580
-------- -------- -------- -------- -------- -------- --------
Total current liabilities 17,886 - - - - - 17,886
Minority interest 77 77
-------- -------- -------- -------- -------- -------- --------
Total liabilities 17,963 - - - - - 17,963
-------- -------- -------- -------- -------- -------- --------
Stockholders' equity
Common stock and additional paid-in capital 57,752 - - - 57,752
Treasury stock (17,952) (17,952)
Other comprehensive income (2,221) - - - (2,221)
Retained earnings 14,581 12,281 (13,081) 7,522 (95) 6,627 21,208
-------- -------- -------- -------- -------- -------- --------
Total stockholders' equity 52,160 12,281 (13,081) 7,522 (95) 6,627 58,787
-------- -------- -------- -------- -------- -------- --------
Total liabilities and stockholders' equity $ 70,123 $ 12,281 $(13,081) $ 7,522 $ (95) $ 6,627 $ 76,750
-------- -------- -------- -------- -------- -------- --------
(a) To record the sales of assets of the Graphics Division
(b) To record the investment in XGI Technology, Inc.
(c) To record the gain on the sale of one-third of our investment in XGI to
another investor. The total gain of $6.6 million represents cash received on
the sale of the Graphics Division to XGI and on the subsequent sale of
one-third of our investment in XGI less cash paid and our basis in
inventories and equipment transferred to XGI as no value has been attributed
to the retained investment in XGI.
(d) To record the estimated additional cost of the transaction.
UNAUDITED PRO-FORMA CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED JUNE 30, 2003
(In thousands, except per share amounts)
Net
Historical (e) (f) Adjustment Pro forma
---------- -------- -------- ---------- ---------
Net revenue $ 52,752 $(26,247) $ - $(26,247) $ 26,505
Cost of revenue 37,720 (24,374) - (24,374) 13,346
-------- -------- -------- -------- ---------
Gross profit 15,032 (1,873) - (1,873) 13,159
Operating expenses:
Research and development 21,600 - (12,296) (12,296) 9,304
Selling, general and administrative 11,886 - (6,357) (6,357) 5,529
-------- -------- -------- -------- ---------
Loss from operations (18,454) (1,873) 18,653 16,780 (1,674)
Loss on investments, net (4,995) - (4,995)
Interest and other expense, net (269) - (269)
-------- -------- -------- -------- ---------
Loss before income taxes (23,718) (1,873) 18,653 16,780 (6,938)
Provision for income taxes 1,046 - - - 1,046
-------- -------- -------- -------- ---------
Net loss $(24,764) $ (1,873) $ 18,653 $ 16,780 $ (7,984)
======== -------- -------- -------- =========
Basic and diluted net loss per share $ (1.81) - $ (0.58)
-------- --------
Shares used to compute basic and diluted net loss per share 13,683 13,683
-------- --------
(e) Represents net sales and cost of sales of the Graphics Division
(f) Represents research and development, selling, general and administrative
expenses of the Graphics Division.