EXHIBIT 99.1
SYMMETRICOM, INC.
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
On February 10, 1999, Symmetricom, Inc., a California corporation,
("Symmetricom" or "Registrant"), Linfinity Microelectronics Inc., a Delaware
corporation which is a subsidiary of Symmetricom, ("Linfinity"), Microsemi
Corporation, a Delaware corporation, ("Purchaser")and Micro-Linfinity
Acquisition Corporation, a Delaware corporation and wholly owned subsidiary of
Purchaser, ("Purchaser Sub") entered into an agreement and plan of
reorganization in which the Purchaser Sub shall be merged with and into
Linfinity upon satisfaction of conditions to consummation including approval of
the merger by Symmetricom's shareholders.
The following unaudited pro forma condensed consolidated balance sheet as of
December 31, 1998, and the unaudited pro forma condensed consolidated statements
of operations for the year ended June 30, 1998, and the six months ended
December 31, 1998 give effect to the disposition of Linfinity Microelectronics
Inc.
The unaudited pro forma condensed consolidated financial statements are intended
for informational purposes only and are not necessarily indicative of the future
financial position or future results of operations of the existing company, or
of the financial position or the results of operations of the existing company
that would have actually occurred had the disposition been in effect as of the
date or for the periods presented.
These unaudited pro forma condensed consolidated financial statements and the
accompanying notes should be read in conjunction with the historical
consolidated financial statements and the related notes thereto of registrant
contained in its 1998 Annual Report on Form 10-K and its Quarterly Report on
Form 10-Q for the quarter ended December 31, 1998.
SYMMETRICOM, INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Six Months Ended December 31, 1998
(In thousands, except per share amounts)
Historical Less
----------- ----------------
Linfinity
Symmetricom, Microelectronics Other Pro
Inc. Inc. (a) Adjustments Forma
----------- ---------------- ------------- ----------
Net sales .................................. $ 60,202 $ 22,013 $ -- $ 38,189
Cost of sales .............................. 35,487 15,565 -- 19,922
-------- -------- -------- --------
Gross profit ........................ 24,715 6,448 -- 18,267
Operating expenses:
Research and development ................. 9,281 2,620 -- 6,661
Selling, general and administrative ...... 14,764 4,277 159 (b) 10,646
-------- -------- -------- --------
Operating income (loss) ............. 670 (449) (159) 960
Interest income ............................ 948 54 -- 894
Interest expense ........................... (360) (86) (86)(c) (360)
-------- -------- -------- --------
Earnings (loss) before income taxes . 1,258 (481) (245) 1,494
Income tax provision (benefit) ............. 264 (154) (104)(d) 314
-------- -------- -------- --------
Net earnings (loss) ................. $ 994 $ (327) $ (141) $ 1,180
======== ======== ======== ========
Basic earnings (loss) per share ............ $ 0.06 $ (0.02) $ (0.01) $ 0.08
======== ======== ======== ========
Weighted average shares outstanding--basic . 15,604 15,604 15,604 15,604
======== ======== ======== ========
Diluted earnings (loss) per share .......... $ 0.06 $ (0.02) $ (0.01) $ 0.08
======== ======== ======== ========
Weighted average shares outstanding--diluted 15,630 15,630 15,630 15,630
======== ======== ======== ========
Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations
(a) To remove revenues and expenses of Linfinity operations.
(b) To record corporate administrative costs previously allocated to
Linfinity.
(c) To remove intercompany interest income.
(d) The Linfinity operating results reflect a provision for income taxes as
if Linfinity was a separate taxpayer. For pro forma purposes, tax expense
was recalculated on a pro forma basis for the Registrant without
Linfinity. This adjustment represents the tax difference arising from
this with and without calculation.
SYMMETRICOM, INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
Year Ended June 30, 1998
(In thousands, except per share amounts)
Historical Less
----------- ------------
Linfinity
Symmetricom, Microelectronics Other Pro
Inc. Inc. (a) Adjustments Forma
----------- ------------ ------------ -----------
Net sales .................................. $ 120,581 $ 47,270 $ -- $ 73,311
Cost of sales .............................. 76,306 39,288 -- 37,018
--------- --------- -------- ---------
Gross profit ........................ 44,275 7,982 -- 36,293
Operating expenses:
Research and development ................. 18,810 6,423 -- 12,387
Selling, general and administrative ...... 30,586 11,496 624 (b) 19,714
--------- --------- -------- ---------
Operating income (loss) ............. (5,121) (9,937) (624) 4,192
Interest income ............................ 1,819 106 -- 1,713
Interest expense ........................... (838) (230) (122)(c) (730)
--------- --------- -------- ---------
Earnings (loss) before income taxes . (4,140) (10,061) (746) 5,175
Income tax provision (benefit) ............. (2,610) (3,219) 550 (d) 1,159
--------- --------- -------- ---------
Net earnings (loss) ................. $ (1,530) $ (6,842) $ (1,296) $ 4,016
========= ========= ======== =========
Basic earnings (loss) per share ............ $ (0.10) $ (0.43) $ (0.08) $ 0.25
========= ========= ======== =========
Weighted average shares outstanding--basic . 15,845 15,845 15,845 15,845
========= ========= ======== =========
Diluted earnings (loss) per share .......... $ (0.10) $ (0.43) $ (0.08) $ 0.25
========= ========= ======== =========
Weighted average shares outstanding--diluted 15,845 15,845 15,845 15,989(e)
========= ========= ======== =========
Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations
(a) To remove revenues and expenses of Linfinity operations.
(b) To record corporate administrative costs previously allocated to
Linfinity.
(c) To remove intercompany interest income.
(d) The Linfinity operating results reflect a provision for income taxes as
if Linfinity was a separate taxpayer. For pro forma purposes, tax expense
was recalculated on a pro forma basis for the Registrant without
Linfinity. This adjustment represents the tax difference arising from
this with and without calculation.
(e) Weighted average shares outstanding -- diluted increased due to the
dilutive effect of potential common shares outstanding during the period.
SYMMETRICOM, INC.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
December 31, 1998
(In thousands)
Historical
------------
Linfinity
Symmetricom, Microelectronics Other Pro
Inc. Inc. (a) Adjustments Forma
------------ ----------------- ------------ ---------
ASSETS
Current assets:
Cash and cash equivalents ........................ $ 22,533 $ -- $ 19,900 (b) $ 42,433
Short-term investments ........................... 13,916 -- -- 13,916
Accounts receivable, net ......................... 16,164 (5,346) -- 10,818
Inventories ...................................... 15,157 (5,614) -- 9,543
Other current assets ............................. 8,790 (112) (4,624)(d) 4,054
-------- -------- -------- --------
Total current assets ...................... 76,560 (11,072) 15,276 80,764
Property, plant and equipment, net ............... 36,287 (15,189) -- 21,098
Other assets ..................................... 1,133 (17) -- 1,116
Net assets of Linfinity operations subject to sale -- 19,814 (19,814)(c) --
-------- -------- -------- --------
Total assets .............................. $113,980 $ (6,464) $ (4,538) $102,978
======== ======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ................................. $ 5,479 $ (2,907) $ -- $ 2,572
Accrued liabilities .............................. 16,200 (3,557) -- 12,643
Current maturities of long-term obligations ...... 553 -- -- 553
-------- -------- -------- --------
Total current liabilities ................. 22,232 (6,464) -- 15,768
Long-term obligations ............................ 8,525 -- -- 8,525
Deferred income taxes ............................ 1,954 -- (1,762)(d) 192
-------- -------- -------- --------
Total liabilities ......................... 32,711 (6,464) (1,762) 24,485
-------- -------- -------- --------
Shareholders' equity:
Preferred stock
Common stock ..................................... 19,810 -- -- 19,810
Retained earnings ................................ 61,459 -- (2,776)(e) 58,683
-------- -------- -------- --------
Total shareholders' equity ................ 81,269 -- (2,776) 78,493
-------- -------- -------- --------
-------- -------- -------- --------
Total liabilities and shareholders' equity ....... $113,980 $ (6,464) $ (4,538) $102,978
======== ======== ======== ========
Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet
(a) To remove assets and liabilities of the Linfinity operations which are
subject to sale and reflect the net assets on the balance sheet as net
assets of Linfinity operations.
(b) To reflect cash proceeds from the sale of Linfinity, net of anticipated
costs of $3.1 million.
(c) To reflect net assets of Linfinity sold.
(d) To establish a valuation allowance against net deferred tax assets in
connection with the sale of Linfinity.
(e) To adjust retained earnings to reflect the sale of Linfinity.