NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except
per share amounts) Three Months Ended Nine Months Ended
(Unaudited) September June September September September
27 28 28 27 28
2003 2003 2002 2003 2002
Net sales $221,099 $239,050 $230,495 $698,559 $622,321
Cost of sales 162,323 133,728 121,113 424,647 339,846
Gross profit 58,776 105,322 109,382 273,912 282,475
% 26.6% 44.1% 47.5% 39.2% 45.4%
Operating expenses:
Selling, general and
administrative 40,123 44,444 43,143 127,197 117,307
Research and
development 59,858 56,509 58,248 173,374 171,021
Restructuring and
other charges
(benefits) 18,529 -- -- 18,529 (4,389)
Total operating expenses 118,510 100,953 101,391 319,100 283,939
% 53.6% 42.2% 44.0% 45.7% 45.6%
Income (loss) from
operations (59,734) 4,369 7,991 (45,188) (1,464)
% -27.0% 1.8% 3.5% -6.5% -0.2%
Other income (loss), net 2,722 5,537 (8,121) 13,911 21,396
Income (loss) before
income taxes and
cumulative
effect of a change in
accounting principle (57,012) 9,906 (130) (31,277) 19,932
Provision (benefit) for
income taxes (22,224) 2,476 (4,213) (15,791) --
Income (loss) before
cumulative effect of a
change in accounting
principle (34,788) 7,430 4,083 (15,486) 19,932
Cumulative effect of a
change in accounting
principle, net of tax (62,780) -- -- (62,780) --
Net income (loss) $(97,568) $7,430 $4,083 $(78,266) $19,932
Net income (loss) per share:
Basic
Income (loss) before
cumulative effect of
a change in
accounting principle $(0.23) $0.05 $0.03 $(0.10) $0.14
Cumulative effect of
a change in
accounting principle (0.41) -- -- (0.42) --
Basic net income
(loss) per share $(0.64) $0.05 $0.03 $(0.52) $0.14
Diluted
Income (loss) before
cumulative effect of
a change in
accounting principle $(0.23) $0.05 $0.03 $(0.10) $0.13
Cumulative effect of
a change in accounting
principle (0.41) -- -- (0.42) --
Diluted net income
(loss) per share $(0.64) $0.05 $0.03 $(0.52) $0.13
Shares used in basic per
share calculation 151,280 149,950 143,691 150,221 144,355
Shares used in diluted
per share calculation 151,280 153,034 146,094 150,221 149,257
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(EXCLUDING CERTAIN UNUSUAL CHARGES AND BENEFITS) (1)
(In thousands, except
per share amounts) Three Months Ended Nine Months Ended
(Unaudited) September June September September September
27 28 28 27 28
2003 2003 2002 2003 2002
Net sales $221,099 $239,050 $230,495 $698,559 $622,321
Cost of sales 118,371 133,728 121,113 380,695 339,846
Gross profit 102,728 105,322 109,382 317,864 282,475
% 46.5% 44.1% 47.5% 45.5% 45.4%
Operating expenses:
Selling, general and
administrative 40,123 44,444 43,143 127,197 117,307
Research and
development 59,858 56,509 58,248 173,374 171,021
Total operating expenses 99,981 100,953 101,391 300,571 288,328
% 45.2% 42.2% 44.0% 43.0% 46.3%
Income (loss) from
operations 2,747 4,369 7,991 17,293 (5,853)
% 1.2% 1.8% 3.5% 2.5% -0.9%
Other income, net 2,722 5,537 8,926 13,911 33,840
Income before income
taxes 5,469 9,906 16,917 31,204 27,987
Provision (benefit) for
income taxes (668) 2,476 776 5,765 3,101
Net income $6,137 $7,430 $16,141 $25,439 $24,886
Net income per share:
Basic net income
(loss) per share $0.04 $0.05 $0.11 $0.17 $0.17
Diluted net income
(loss) per share $0.04 $0.05 $0.11 $0.17 $0.17
Shares used in basic per
share calculation 151,280 149,950 143,691 150,221 144,355
Shares used in diluted
per share calculation 155,452 153,034 146,094 153,572 149,257
A reconciliation of our net income excluding certain unusual charges and benefits to our net income under accounting principles generally accepted in the United States of America is presented below:
Net income excluding
unusual charges
and benefits $6,137 $7,430 $16,141 $25,439 $24,886
Unusual (charges)
benefits:
Cumulative effect of a
change in accounting
principle (62,780) -- -- (62,780) --
Inventory write-down (43,952) -- -- (43,952) --
Write-off of fixed
assets (2,739) -- -- (2,739) --
Facilities charges (4,088) -- -- (4,088) --
Write-off of purchased
technology (5,204) -- -- (5,204) --
Write-off debt
issuance costs -- -- (17,047) - (17,047)
Bad debt recovery
(write-off) -- -- -- - 7,662
Severance charges (3,807) -- -- (3,807) (3,273)
Legal settlements (2,691) -- -- (2,691) --
Gain on a sale of
investment -- -- -- -- 4,603
Total charges (125,261) -- (17,047) (125,261) (8,055)
Adjustments on
provision for income
taxes 21,556 -- 4,989 21,556 3,101
Net income $(97,568) $7,430 $4,083 $(78,266) $19,932
(1) The condensed consolidated statements of operations (excluding
certain unusual charges and benefits) are intended to present our
operating results, excluding certain unusual charges, benefits and
related adjustments on provisions for income taxes. These condensed
consolidated statements of operations are not in accordance with or
an alternative for accounting principles generally accepted in the
United States of America and may be different from similar measures
presented by other companies.
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 27, 2003
(In thousands, except per share amounts)
(Unaudited) Unusual (Charges) Benefits
Cumulative Adjustments
effect Restruct- on
Q3 of a uring Provision
2003 change in Inventory and for Q3
NON- accounting Write- other income 2003
GAAP (1) principle down charges (2) taxes GAAP
Net sales $221,099 $221,099
Cost of
sales 118,371 (43,952) 162,323
Gross
Profit 102,728 58,776
% 46.5% 26.6%
Operating
expenses:
Selling,
general
and
admini-
strative 40,123 40,123
Research
and
develop-
ment 59,858 59,858
Restructuring
and other
charges
(benefits) -- (18,529) 18,529
Total
operating
expenses 99,981 118,510
% 45.2% 53.6%
Income (loss)
from
operations 2,747 (59,734)
% 1.2% -27.0%
Other income,
net 2,722 2,722
Income (loss)
before income
taxes and
cumulative
effect of a
change in
accounting
principle 5,469 (57,012)
Provision
(benefit)
for
income
taxes (668) 21,556 (22,224)
Income (loss)
before
cumulative
effect of a
change in
accounting
principle 6,137 (34,788)
Cumulative
effect of a
change in
accounting
principle,
net of tax -- (62,780) (62,780)
Net income
(loss) $6,137 $(97,568)
Net income
(loss) per
share:
Basic
Income
(loss)
before
cumulative
effect of
a
change in
accounting
principle $0.04 $(0.23)
Cumulative
effect of
a
change in
accounting
principle -- (0.41)
Basic net
income
(loss)
per
share $0.04 $(0.64)
Diluted
Income (loss)
before
cumulative
effect of
a change
in
accounting
principle $0.04 $(0.23)
Cumulative
effect of
a change
in
accounting
principle -- (0.41)
Diluted net
income
(loss)
per
share $0.04 $(0.64)
Shares used
in basic per
share
calculation 151,280 151,280
Shares used
in diluted
per share
calculation 155,452 151,280
(1) The condensed consolidated statements of operations (excluding certain
unusual charges and benefits) are intended to present our operating
results, excluding certain unusual charges, benefits and related
adjustments on provisions for income taxes. These condensed
consolidated statements of operations are not in accordance with or an
alternative for accounting principles generally accepted in the United
States of America and may be different from similar measures presented
by other companies.
(2) Restructuring and other charges:
Write-off
of fixed
assets $(2,739)
Facilities
charges (4,088)
Write-off
of purchased
tech-
nology (5,204)
Severance
charges (3,807)
Legal
settle-
ments (2,691)
Total $(18,529)
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) September 27 December 31
2003 2002
(Unaudited) *
ASSETS
Current assets:
Cash and short-term investments $977,513 $1,019,652
Accounts receivable, net 221,308 192,862
Inventories 200,773 257,358
Deferred taxes and other current assets 174,793 164,062
Total current assets 1,574,387 1,633,934
Property and equipment, net 513,241 179,926
Notes receivable -- 397,429
Goodwill 172,893 163,136
Intangible and other assets 57,315 119,569
Total assets $2,317,836 $2,493,994
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $181,909 $192,691
Deferred profit 40,477 55,613
Income taxes payable 8,731 14,070
Short-term obligations 3,164 2,799
Convertible subordinated
debentures -- 116,437
Total current liabilities 234,281 381,610
Deferred income tax liabilities -- 19,502
Other liabilities 48,251 37,194
Total liabilities 282,532 438,306
Shareholders' equity:
Common stock 1,543,604 1,487,281
Retained earnings and accumulated
other comprehensive income 491,700 568,407
Total shareholders' equity 2,035,304 2,055,688
Total liabilities and shareholders'
equity $2,317,836 $2,493,994
* The December 31, 2002 condensed consolidated balance sheet was
derived from our audited consolidated financial statements.
Source: Novellus Systems, Inc. |
