PRO FORMA CONSOLIDATED INCOME STATEMENT
(in thousands except per share data)
Quarter Ended June 30, Six Months Ended June 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $46,171 $85,701 $120,885 $160,729
Cost of sales 31,274 43,338 74,765 81,699
Gross profit 14,897 42,363 46,120 79,030
Operating expenses:
Research and development 11,040 8,504 23,429 16,617
Sales and marketing 5,963 5,373 12,592 11,240
General and
administrative 5,645 5,810 11,819 11,449
(Loss) income from
operations (7,751) 22,676 (1,720) 39,724
Other (expense) income (70) 731 117 851
Net (loss) income before
income taxes and
minority interest (7,821) 23,407 (1,603) 40,575
(Benefit) provision
for income taxes (3,039) 8,910 (913) 14,857
Minority interest
in net income (loss) 105 (67) 40 (84)
Pro forma net (loss)
income $(4,887) $14,564 $(730) $25,802
Pro forma net (loss)
earnings per share:
Basic $(0.15) $0.47 $(0.02) $0.83
Diluted $(0.15) $0.45 $(0.02) $0.79
Basic weighted-average
common shares
outstanding 31,698 31,314 31,623 31,238
Diluted weighted-average
common shares
outstanding 31,698 32,543 31,623 32,528
THE PRO FORMA AMOUNTS HAVE BEEN ADJUSTED TO ELIMINATE THE FOLLOWING:
Excess, obsolete and
warranty inventory
charges 7,116 -- 7,116 --
Goodwill impairment 5,446 -- 5,446 --
Restructuring charge 614 -- 614 --
Litigation recovery -- -- (1,500) --
Merger costs -- 2,333 -- 2,333
Income tax effect (3,514) (887) (2,951) (887)
$9,662 $1,446 $8,725 $1,446
CONSOLIDATED INCOME STATEMENT
(in thousands except per share data)
Quarter Ended June 30, Six Months Ended June 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Sales $46,171 $85,701 $120,885 $160,729
Cost of sales 38,390 43,338 81,881 81,699
Gross profit 7,781 42,363 39,004 79,030
Operating expenses:
Research and development 11,040 8,504 23,429 16,617
Sales and marketing 5,963 5,373 12,592 11,240
General and
administrative 5,645 5,810 11,819 11,449
Goodwill impairment 5,446 -- 5,446 --
Restructuring charge 614 -- 614 --
Litigation recovery -- -- (1,500) --
Merger costs -- 2,333 -- 2,333
(Loss) income from
operations (20,927) 20,343 (13,396) 37,391
Other (expense) income (70) 731 117 851
Net (loss) income
before income taxes
and minority interest (20,997) 21,074 (13,279) 38,242
(Benefit) provision
for income taxes (6,553) 8,023 (3,864) 13,970
Minority interest in
net income (loss) 105 (67) 40 (84)
Net (loss) income $(14,549) $13,118 $(9,455) $24,356
Net (loss) earnings
per share:
Basic $(0.46) $0.42 $(0.30) $0.78
Diluted $(0.46) $0.40 $(0.30) $0.75
Basic weighted-average
common shares
outstanding 31,698 31,314 31,623 31,238
Diluted weighted-average
common shares
outstanding 31,698 32,543 31,623 32,528
ADDITIONAL INFORMATION
- EBITDA:
(Loss) earnings before
interest, taxes,
depreciation and
amortization $(16,941) $23,077 $(5,722) $42,240
Pretax EBITDA
diluted EPS $(0.53) $0.71 $(0.18) $1.30
After tax EBITDA
diluted EPS $(0.37) $0.48 $(0.13) $0.83
CONSOLIDATED BALANCE SHEET
(in thousands)
June 30, December 31,
2001 2000
ASSETS (unaudited) (unaudited)
Current Assets:
Cash and cash equivalents $32,448 $31,716
Marketable securities - trading 129,180 157,811
Accounts receivable 43,099 76,545
Notes receivable 2,472 2,472
Income tax receivable 9,865 74
Inventories 47,462 45,266
Other current assets 2,658 2,508
Deferred income tax assets, net 9,040 7,483
Total current assets 276,224 323,875
Property and equipment, net 33,245 24,101
Goodwill and intangibles, net 24,936 9,890
Investments 2,452 1,824
Deferred debt issuance costs 2,015 2,261
Other assets 4,842 3,884
Total assets $343,714 $365,835
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $8,673 $18,250
Other current liabilities 15,198 16,210
Accrued income taxes payable 1,313 7,923
Current portion of long-term debt 216 1,337
Accrued interest payable on
convertible subordinated notes 529 529
Total current liabilities 25,929 44,249
Long-term Liabilities:
Capital leases and notes payable 230 1,043
Deferred income tax liability, net 1,116 --
Convertible subordinated
notes payable 81,600 81,600
Total long-term liabilities 82,946 82,643
Total liabilities 108,875 126,892
Minority interest 185 145
Stockholders' equity 234,654 238,798
Total liabilities and
stockholders' equity $343,714 $365,835
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
2001 2000
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $(9,455) $24,356
Depreciation and amortization 8,397 5,163
Provision for inventory 7,116 --
Provision for restructuring 614 --
Loss on impairment of goodwill 5,446 --
Earnings from marketable
securities, net (2,695) (4,781)
Accounts receivable and
notes receivable 34,613 (9,259)
Inventories (5,134) (8,021)
Accounts payable, trade (9,932) 683
Income taxes (14,810) 1,976
Other (6,861) 2,621
Net cash provided by
operating activities 7,299 12,738
CASH FLOWS FROM INVESTING ACTIVITIES:
Marketable securities 32,000 (10,000)
Proceeds from sale of equipment -- 150
Purchase of property and
equipment, net (9,442) (5,279)
Purchase of investments (639) (531)
Acquisition of EMCO, net of
cash acquired (29,932) --
Net cash used in
investing activities (8,013) (15,660)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change from notes payable
and capital lease obligations (1,934) (363)
Proceeds from common stock transactions 2,735 3,032
Net cash provided by
financing activities 801 2,669
EFFECT OF CURRENCY TRANSLATION ON CASH 645 (666)
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 732 (919)
CASH AND EQUIVALENTS,
beginning of period 31,716 21,043
CASH AND EQUIVALENTS, end of period $32,448 $20,124