CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
(in thousands except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2002 2001 2002 2001
Sales $67,893 $46,171 $110,780 $120,885
Cost of sales 43,581 38,390 73,094 81,881
Gross profit 24,312 7,781 37,686 39,004
Operating expenses:
Research and
development 12,587 11,040 23,835 23,429
Sales and marketing 8,712 5,963 15,463 12,592
General and
administrative 7,030 5,645 13,828 11,819
Goodwill impairment -- 5,446 -- 5,446
Restructuring charge -- 614 -- 614
Litigation damages
(recoveries) 5,313 -- 5,313 (1,500)
Total operating
expenses 33,642 28,708 58,439 52,400
Loss from operations (9,330) (20,927) (20,753) (13,396)
Other income (expense) 1,424 (70) (573) 117
Net loss before income
taxes and minority
interest (7,906) (20,997) (21,326) (13,279)
Benefit for income
taxes (2,767) (6,553) (7,464) (3,864)
Minority interest in
net income -- 105 -- 40
Net loss $(5,139) $(14,549) $(13,862) $(9,455)
Net loss per share:
Basic $(0.16) $(0.46) $(0.43) $(0.30)
Diluted $(0.16) $(0.46) $(0.43) $(0.30)
Basic weighted-average
common shares
outstanding 32,045 31,698 31,959 31,623
Diluted weighted-average
common shares
outstanding 32,045 31,698 31,959 31,623
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Other information
(in thousands except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2002 2001 2002 2001
ADDITIONAL INFORMATION -
Pro forma without
exceptional items:
Pro forma net loss
without exceptional
items $(4,605) $(4,887) $(13,328) $(730)
Pro forma basic loss
per share $(0.14) $(0.15) $(0.42) $(0.02)
Pro forma diluted loss
per share $(0.14) $(0.15) $(0.42) $(0.02)
ADDITIONAL INFORMATION - EBITDA:
(Loss) earnings before
interest, taxes,
depreciation and
amortization $(943) $(16,941) $(8,113) $(5,722)
Pretax EBITDA
diluted EPS $(0.03) $(0.53) $(0.25) $(0.18)
After tax EBITDA
diluted EPS $(0.02) $(0.37) $(0.17) $(0.13)
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 damages
(recoveries) 5,313 -- 5,313 (1,500)
Foreign exchange gain (4,492) -- (4,492) --
Income tax effect (287) (3,514) (287) (2,951)
$534 $9,662 $534 $8,725
EBITDA RECONCILIATION
Loss before income
taxes and minority
interest (7,906) (20,997) (21,326) (13,279)
Interest income (776) (1,347) (1,716) (3,116)
Interest expense 3,190 1,234 6,488 2,522
Depreciation and
amortization 4,549 4,169 8,441 8,151
$(943) $(16,941) $(8,113) $(5,722)
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
June 30, December 31,
2002 2001
ASSETS
Current Assets:
Cash and cash equivalents $36,143 $81,955
Marketable securities 161,732 190,023
Accounts receivable 55,135 30,812
Income tax receivable 18,107 15,862
Inventories 65,001 45,248
Other current assets 3,906 4,178
Deferred income tax assets, net 10,013 11,200
Total current assets 350,037 379,278
Property and equipment, net 44,740 31,095
Deposits and other 7,203 6,482
Goodwill and intangibles, net 92,373 23,072
Demonstration and customer service equipment 5,197 4,532
Deferred debt issuance costs 5,066 5,736
Total assets $504,616 $450,195
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $19,971 $10,231
Other current liabilities 23,897 14,778
Current portion of long-term debt 15,406 1,130
Accrued interest payable on convertible
subordinated notes 2,710 2,696
Total current liabilities 61,984 28,835
Long-term Liabilities:
Senior borrowings 16,444 --
Capital leases 1,197 --
Convertible subordinated notes payable 206,600 206,600
Deferred income tax liability, net 9,811 415
Total long-term liabilities 234,052 207,015
Total liabilities 296,036 235,850
Stockholders' equity 208,580 214,345
Total liabilities and stockholders' equity $504,616 $450,195
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended June 30,
2002 2001
NET CASH (USED IN) PROVIDED BY
OPERATING ACTIVITIES $(13,616) $9,994
NET CASH USED IN INVESTING ACTIVITIES (30,701) (10,708)
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (3,195) 801
EFFECT OF CURRENCY TRANSLATION ON CASH 1,700 645
(DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (45,812) 732
CASH AND EQUIVALENTS, beginning of period 81,955 31,716
CASH AND EQUIVALENTS, end of period $36,143 $32,448