Thursday July 13, 4:10 pm Eastern Time
Company Press Release
Vitesse Reports Results for Third Quarter of Fiscal 2000
CAMARILLO, Calif.--(BUSINESS WIRE)--July 13, 2000--Vitesse Semiconductor Corporation (NASDAQ:VTSS - news; ``Vitesse'' or the ``Company'') today reported results for the third quarter of fiscal 2000 ended June 30, 2000. Revenues in the third quarter of fiscal 2000 were $114.1 million, an increase of 56% over the $73.3 million in the third quarter of fiscal 1999 and an increase of 14% over the $100.3 million in the second quarter of fiscal 2000. For the nine month period ended June 30, 2000, revenues were $303.7 million, a 51% increase over the $201.0 million for the nine month period ended June 30, 1999.
Pro forma net income for the third quarter of fiscal 2000, which excludes the amortization of goodwill and certain acquisition related costs discussed below, was $32.1 million or $0.17 per share, compared to net income of $15.2 million or $0.08 per share in the third quarter of fiscal 1999 and net income of $24.4 million or $0.13 per share in the prior quarter.
In the third quarter of fiscal 2000, the Company recorded amortization of goodwill and acquisition related costs relating principally to the recently completed Orologic, Inc. and SiTera, Inc. acquisitions, respectively, in the amount of $21.4 million.
Including the above mentioned amortization of goodwill and acquisition related costs, the Company recorded net income of $13.3 million or $0.07 per share for the quarter ended June 30, 2000, compared to net income of $15.2 million or $0.08 per share in the third quarter of 1999 and a net loss of $16.9 million or $0.10 loss per share in the prior quarter. For the nine month period ended June 30, 2000, net income was $16.3 million or $0.09 per share which included the amortization of goodwill and certain acquisition related costs aggregating $69.7 million or $0.37 per share, compared to net income of $41.7 million or $0.23 per share in the nine month period ended June 30, 1999.
Vitesse President and CEO, Lou Tomasetta, said ``This was an exceptionally strong quarter for our OC48 and OC192 telecom products. We are seeing numerous products originally designed for OC48 network core transmission systems now also being designed into higher volume metro network and enterprise systems.''
Vitesse Semiconductor Corporation is the leading designer and supplier of innovative, high performance semiconductors utilizing state-of-the-art processes for the manufacturers of next generation DWDM and optical networking communications equipment. Vitesse also develops storage area networking ICs and enclosure management products that monitor and communicate critical reliability and availability information. The Company's products address the needs of Core, Access, Optical and Enterprise network equipment manufacturers who demand a combination of high speed, high complexity and low power dissipation. Vitesse is headquartered in Camarillo, Calif., and operates two fabrication facilities in Camarillo and Colorado Springs. Company/product information can be found on the Web at www.vitesse.com.
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VITESSE SEMICONDUCTOR CORPORATION
FINANCIAL SUMMARY
Pro Forma Statement of Operations
(in thousands except per share data)
Three months ended Nine months ended
(unaudited) (unaudited)
Pro Forma Pro Forma
June 30, June 30, Mar. 31, June 30, June 30,
2000 1999 2000 2000 1999
---------- --------- ---------- -------- ----------
Revenues $114,090 $ 73,277 $100,310 $303,679 $200,982
Costs and
expenses:
Cost of
revenues 38,747 27,343 35,111 105,697 75,908
Engineering
& development 21,617 15,013 20,733 60,160 42,057
Selling, general
& administrative 13,120 11,149 11,685 36,762 29,695
-------- -------- -------- -------- --------
Income from
operations 40,606 19,772 32,781 101,060 53,322
Other income 7,273 2,917 3,683 13,750 8,286
-------- -------- -------- -------- --------
Income before
income taxes 47,879 22,689 36,464 114,810 61,608
Income taxes 15,800 7,487 12,033 37,887 20,330
-------- -------- -------- -------- --------
Net income $ 32,079 $ 15,202 $ 24,431 $ 76,923 $ 41,278
======== ======== ======== ======== ========
Weighted average
shares 192,567 191,161 187,906 188,589 176,151
======== ======== ======== ======== ========
Net income per share
- diluted $ 0.17 $ 0.08 $ 0.13 $ 0.41 $ 0.23
======== ======== ======== ======== ========
The above pro forma amounts have been adjusted to eliminate the one-time charge for the write-off of purchased IPR&D of $45.6 million included in the nine month period ended June 30, 2000, and goodwill amortization and other acquisition related costs of $21.4 million and $24.1 million for the three month and nine month periods ended June 30, 2000, respectively.
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VITESSE SEMICONDUCTOR CORPORATION
FINANCIAL SUMMARY
Statement of Operations
(in thousands except per share data)
Three months ended Nine months ended
(unaudited) (unaudited)
June 30, June 30, Mar. 31, June 30, June 30,
2000 1999 2000 2000 1999
---------- --------- -------- ---------- ---------
Revenues $ 114,090 $ 73,277 $ 100,310 $ 303,679 $ 200,982
Costs and
expenses:
Cost of
revenues 38,747 27,343 35,111 105,697 75,908
Engineering
& development 21,617 15,013 21,093 60,880 42,057
Selling, general
& administrative 13,120 10,789 11,685 36,762 28,843
Acquisition
related costs 21,413 360 47,843 69,677 850
--------- --------- --------- --------- ---------
Income (loss) from
operations 19,193 19,772 (15,422) 30,663 53,324
Other income 7,273 2,917 3,683 13,750 8,286
--------- --------- --------- --------- ---------
Income before
income taxes 26,466 22,689 (11,739) 44,413 61,610
Income taxes 13,182 7,487 5,135 28,113 19,933
--------- --------- --------- --------- ---------
Net income
(loss) $ 13,284 $ 15,202 $ (16,874) $ 16,300 $ 41,677
========= ========= ========= ========= =========
Weighted average
shares 192,567 181,423 174,152 188,589 179,692
========= ========= ========= ========= =========
Net income (loss)
per share
- diluted $ 0.07 $ 0.08 $ (0.10) $ 0.09 $ 0.23
========= ========= ========= ========= =========
Selected Balance Sheet Items
as of June 30, 2000:
Cash and investments $ 967,397
Accounts receivable $ 100,535
Inventories $ 37,532
Total assets $ 1,843,172
Total liabilities $ 773,204
Total shareholders' equity $ 1,069,968
Note: All references to the number of common shares, weighted average number of common shares and per share data for all periods presented have been adjusted to reflect a 2 for 1 stock split of the common stock that was effected on October 20, 1999 and the issuance of shares in connection with the acquisition of SiTera, Inc. All periods presented have been retroactively restated to account for the acquisition of SiTera, Inc. which was completed in the third quarter of fiscal 2000 and has been accounted for under the pooling-of-interests method of accounting |
