CONSOLIDATED INCOME STATEMENT
(in thousands except per share data)
Quarter Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
(unaudited)(unaudited)(unaudited)(unaudited)
Sales $38,722 $96,317 $159,607 $257,046
Cost of sales 27,686 49,492 109,567 131,191
Gross profit 11,036 46,825 50,040 125,855
Operating expenses:
Research and development 10,967 9,711 34,396 26,328
Sales and marketing 5,694 6,232 18,286 17,472
General and administrative 4,817 6,748 16,636 18,197
Other operating expenses 1,221 --- 1,221 ---
Goodwill impairment --- --- 5,446 ---
Restructuring charge --- 1,000 614 1,000
Litigation recovery --- --- (1,500) ---
Merger costs --- 2,250 --- 4,583
(Loss) income from operations (11,663) 20,884 (25,059) 58,275
Other (expense) income (711) 5,598 (594) 6,449
Net (loss) income before income
taxes and minority interest (12,374) 26,482 (25,653) 64,724
(Benefit) provision for income
taxes (4,704) 10,195 (8,568) 24,165
Minority interest in net loss (188) (2) (148) (86)
Net (loss) income $(7,482) $16,289 $(16,937) $40,645
Net (loss) earnings per share:
Basic $(0.24) $0.52 $(0.53) $1.30
Diluted $(0.24) $0.50 $(0.53) $1.25
Basic weighted-average common
shares outstanding 31,784 31,339 31,673 31,276
Diluted weighted-average common
shares outstanding 31,784 32,417 31,673 32,473
ADDITIONAL INFORMATION - Pro forma without
exceptional items:
Pro forma net (loss) income
without exceptional items $(6,733) $16,455 $(7,463) $42,821
Pro forma basic (loss) earnings
per share $(0.21) $0.52 $(0.24) $1.37
Pro forma fully diluted (loss)
earnings per share $(0.21) $0.51 $(0.24) $1.32
ADDITIONAL INFORMATION - EBITDA:
(Loss) earnings without
exceptional items and before
interest, taxes, depreciation
and amortization $(8,056) $28,492 $(13,778) $70,732
Pretax EBITDA diluted EPS $(0.25) $0.81 $(0.44) $2.01
After tax EBITDA diluted EPS $(0.16) $0.50 $(0.29) $1.26
CONSOLIDATED BALANCE SHEET
(in thousands)
September30, December 31,
2001 2000
ASSETS (unaudited) (unaudited)
Current Assets:
Cash and cash equivalents $147,683 $31,716
Marketable securities - trading 128,609 157,811
Accounts receivable 41,573 76,545
Income tax receivable 13,233 74
Inventories 46,808 45,266
Other current assets 3,298 2,508
Deferred income tax assets, net 10,044 7,483
Total current assets 391,248 321,403
Property and equipment, net 32,078 24,101
Notes receivable 3,924 2,472
Goodwill and intangibles, net 23,915 9,890
Investments 2,114 1,824
Deferred debt issuance costs 6,084 2,261
Other assets 5,165 3,884
Total assets $464,528 $365,835
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $12,629 $18,250
Other current liabilities 14,004 16,210
Accrued income taxes payable --- 7,923
Current portion of long-term debt 66 1,337
Accrued interest payable on convertible
subordinated notes 2,205 529
Total current liabilities 28,904 44,249
Long-term Liabilities:
Capital leases and notes payable 230 1,043
Deferred income tax liability, net 1,093 ---
Convertible subordinated notes payable 206,600 81,600
Total long-term liabilities 207,923 82,643
Total liabilities 236,827 126,892
Minority interest (3) 145
Stockholders' equity 227,704 238,798
Total liabilities and stockholders' equity $464,528 $365,835
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Nine Months Ended September 30,
2001 2000
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) income $(16,937) $40,645
Depreciation and amortization 12,304 7,917
Provision for inventory 7,116 ---
Provision for restructuring 614 ---
Loss on impairment of goodwill 5,446 ---
Gain on sale of investment --- (4,841)
Earnings from marketable securities, net (3,436) (7,122)
Accounts receivable and notes receivable 36,139 (29,102)
Inventories (4,480) (11,322)
Accounts payable, trade (6,476) 1,707
Income taxes (19,353) 7,891
Other (8,620) 6,555
Net cash provided by operating activities 2,317 12,328
CASH FLOWS FROM INVESTING
ACTIVITIES:
Marketable securities 33,312 (5,000)
Advances under notes receivable (1,452) (2,472)
Proceeds from sale of investments --- 4,464
Proceeds from sale of equipment --- 150
Purchase of property and equipment, net (10,785) (8,687)
Purchase of investments (639) (1,031)
Acquisition of EMCO, net of cash acquired (29,932) ---
Net cash used in investing
activities (9,496) (12,576)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible debt, net 121,250 ---
Net change from notes payable
and capital lease obligations (2,084) 24
Proceeds from common stock transactions 2,999 4,013
Net cash provided by
financing activities 122,165 4,037
EFFECT OF CURRENCY TRANSLATION ON
CASH 981 (1,578)
INCREASE IN CASH AND CASH
EQUIVALENTS 115,967 2,211
CASH AND EQUIVALENTS, beginning
of period 31,716 21,043
CASH AND EQUIVALENTS, end of
period $147,683 $23,254