NEW FOCUS, INC.
GAAP Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
----------------------------
Sep 28, Jun 29, Sep 29,
2003 2003 2002
-----------------------------
Net product revenues $ 6,326 $ 6,251 $ 6,743
Royalty income 1,384 - -
------- -------- --------
Net revenues 7,710 6,251 6,743
Cost of net product revenues 4,970 5,184 9,811
------- -------- --------
Gross profit (loss) 2,740 1,067 (3,068)
Gross profit (loss) percentage-net
product revenues 21.4% 17.1% (45.5)%
Gross profit (loss) percentage-overall 35.5% 17.1% (45.5)%
Operating expenses:
Research and development, net 1,932 2,355 4,249
Sales and marketing 1,344 1,504 1,837
General and administrative 2,661 2,572 3,688
Amortization of goodwill and other
intangibles 173 173 183
Impairment of goodwill and other
intangibles - - -
Restructuring and impairment charges 1,775 2,118 36,597
Amortization of deferred compensation (120) 476 2,331
------- -------- --------
Total operating expenses 7,765 9,198 48,885
-------- -------- ---------
Operating loss (5,025) (8,131) (51,953)
(65.2)% (130.1)% (770.5)%
Interest income, net 860 937 2,030
Other income (expense), net (204) 11 (6,531)
-------- -------- ---------
Loss before provision for income taxes (4,369) (7,183) (56,454)
Provision for income taxes - - -
-------- -------- ---------
Net loss $(4,369) $ (7,183) $(56,454)
======= ======== ========
(56.7)% (114.9)% (837.2)%
Basic and diluted net loss per share $ (0.07) $ (0.11) $ (0.74)
======= ======== ========
Shares used to compute basic and diluted
net loss per share 63,645 63,262 76,112
======= ======== ========
Nine Months Ended
--------------------
Sep 28, Sep 29,
2003 2002
--------------------
Net product revenues $ 18,715 $ 25,953
Royalty income 1,384 -
-------- ---------
Net revenues 20,099 25,953
Cost of net product revenues 14,987 36,631
-------- ---------
Gross profit (loss) 5,112 (10,678)
Gross profit (loss) percentage-net product
revenues 19.9% (41.1)%
Gross profit (loss) percentage-overall 25.4% (41.1)%
Operating expenses:
Research and development, net 6,458 18,128
Sales and marketing 4,368 6,727
General and administrative 8,410 11,879
Amortization of goodwill and other intangibles 519 2,852
Impairment of goodwill and other intangibles - 7,692
Restructuring and impairment charges 3,929 72,215
Amortization of deferred compensation 883 6,805
-------- ---------
Total operating expenses 24,567 126,298
---------- ---------
Operating loss (19,455) (136,976)
(96.8)% (527.8)%
Interest income, net 2,979 6,850
Other income (expense), net (174) 35,031
---------- ---------
Loss before provision for income taxes (16,650) (95,095)
Provision for income taxes - -
---------- ---------
Net loss $(16,650) $ (95,095)
======== =========
(82.8)% (366.4)%
Basic and diluted net loss per share $ (0.26) $ (1.26)
======== =========
Shares used to compute basic and diluted net loss
per share 63,598 75,766
======== =========
NEW FOCUS, INC.
Non-GAAP Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------------
Sep 28, Jun 29, Sep 29,
2003 2003 2002
----------------------------
Net product revenues $ 6,326 $ 6,251 $ 6,743
Royalty income 1,384 - -
------- ------- --------
Net revenues 7,710 6,251 6,743
Cost of net product revenues 4,970 5,184 9,811
------- ------- --------
Gross profit (loss) 2,740 1,067 (3,068)
Gross profit (loss) percentage-net
product revenues 21.4% 17.1% (45.5)%
Gross profit (loss) percentage-overall 35.5% 17.1% (45.5)%
Operating expenses:
Research and development, net 1,932 2,355 4,249
Sales and marketing 1,344 1,504 1,837
General and administrative 2,661 2,572 3,688
------- ------- --------
Total operating expenses 5,937 6,431 9,774
-------- -------- ---------
Operating loss (3,197) (5,364) (12,842)
(41.5)% (85.8)% (190.4)%
Interest income, net 860 937 2,030
Other income (expense), net (4) 11 19
-------- -------- ---------
Loss before provision for income taxes (2,341) (4,416) (10,793)
Provision for income taxes - - -
-------- -------- ---------
Non-GAAP net loss $(2,341) $(4,416) $(10,793)
======= ======= ========
(30.4)% (70.6)% (160.1)%
Basic and diluted net loss per share $ (0.04) $ (0.07) $ (0.14)
======= ======= ========
Shares used to compute basic and diluted
net loss per share 63,645 63,262 76,112
======= ======= ========
Reconciliation of Non-GAAP net loss
to GAAP net loss:
Non-GAAP net loss $(2,341) $(4,416) $(10,793)
Add:
Operating expenses
Amortization of goodwill and other
intangibles (173) (173) (183)
Restructuring and impairment charges (1,775) (2,118) (36,597)
Amortization of deferred compensation 120 (476) (2,331)
Other income (expense), net
Impairment of equity investments (200) - (1,650)
Impairment of note receivable from
former officer - - (4,595)
Realized loss on sales of Finisar
securities - - (36)
Gain (loss) from divestitures - - (269)
Provision for income taxes - - -
-------- -------- ---------
GAAP net loss $(4,369) $(7,183) $(56,454)
======= ======= ========
Reconciliation of Non-GAAP other
income (expense), net to GAAP
other income (expense), net:
Non-GAAP other income (expense), net $ (4) $ 11 $ 19
Impairment of equity investments (200) - (1,650)
Impairment of note receivable from former
officer - - (4,595)
Realized loss on sales of Finisar securities (36)
Gain (loss) from divestitures - - (269)
------- ------- --------
GAAP other income (expense), net $ (204) $ 11 $ (6,531)
======= ======= ========
Nine Months Ended
----------------------
Sep 28, Sep 29,
2003 2002
----------------------
Net product revenues $ 18,715 $ 25,953
Royalty income 1,384 -
-------- --------
Net revenues 20,099 25,953
Cost of net product revenues 14,987 36,631
-------- --------
Gross profit (loss) 5,112 (10,678)
Gross profit (loss) percentage-net product
revenues 19.9% (41.1)%
Gross profit (loss) percentage-overall 25.4% (41.1)%
Operating expenses:
Research and development, net 6,458 18,128
Sales and marketing 4,368 6,727
General and administrative 8,410 11,879
-------- --------
Total operating expenses 19,236 36,734
--------- ---------
Operating loss (14,124) (47,412)
(70.3)% (182.7)%
Interest income, net 2,979 6,850
Other income (expense), net 26 49
--------- ---------
Loss before provision for income taxes (11,119) (40,513)
Provision for income taxes - -
--------- ---------
Non-GAAP net loss $(11,119) $(40,513)
======== ========
(55.3)% (156.1)%
Basic and diluted net loss per share $ (0.17) $ (0.53)
======== ========
Shares used to compute basic and diluted net
loss per share 63,598 75,766
======== ========
Reconciliation of Non-GAAP
net loss to GAAP net loss:
Non-GAAP net loss $(11,119) $(40,513)
Add:
Operating expenses
Amortization of goodwill and other intangibles (519) (2,852)
Restructuring and impairment charges (3,929) (79,907)
Amortization of deferred compensation (883) (6,805)
Other income (expense), net
Impairment of equity investments (200) (1,650)
Impairment of note receivable from former
officer - (4,595)
Realized loss on sales of Finisar securities - (36)
Gain (loss) from divestitures - 41,263
Provision for income taxes - -
--------- ---------
GAAP net loss $(16,650) $(95,095)
========= =========
Reconciliation of Non-GAAP
other income (expense), net
to GAAP other income (expense), net:
Non-GAAP other income (expense), net $ 26 $ 49
Impairment of equity investments (200) (1,650)
Impairment of note receivable from former
officer - (4,595)
Realized loss on sales of Finisar securities (36)
Gain (loss) from divestitures - 41,263
-------- --------
GAAP other income (expense), net $ (174) $ 35,031
======== ========
NEW FOCUS, INC.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
Sep 28, Dec 29,
2003 2002
--------- ---------
ASSETS
Current Assets:
Cash, cash equivalents and short-term
investments $249,722 $279,358
Trade accounts receivable, net 3,205 3,048
Inventories 3,260 3,122
Other current assets 3,812 3,480
-------- --------
Total current assets 259,999 289,008
Asset held for sale, net 13,712 15,675
Property and equipment, net 4,303 7,392
Intangibles, net 875 1,394
Other assets 3,541 3,895
-------- --------
Total assets $282,430 $317,364
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,626 $ 1,522
Accrued expenses 5,899 7,453
Restructuring liabilities 6,388 6,534
-------- --------
Total current liabilities 13,913 15,509
Long-term portion of restructuring accrual 10,861 14,854
Deferred rent 431 447
Stockholders' equity 257,225 286,554
-------- --------
Total liabilities and stockholders' equity $282,430 $317,364
======== ========
NEW FOCUS, INC.
Condensed Consolidated Statements of Cash Flow
(In thousands)
(Unaudited)
Nine
Months
Three Months Ended Ended
---------------------------- ---------
Sep 28, Jun 29, Mar 30, Sep 28,
2003 2003 2003 2003
---------------------------- ----------
Operating
Activities
GAAP Net Loss $ (4,369) $ (7,183) $ (5,098) $(16,650)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation and
amortization 603 696 717 2,016
Restructuring and
impairment charges 540 2,009 74 2,623
Amortization of goodwill
and other intangibles 173 173 173 519
Amortization of deferred
compensation (120) 476 527 883
Impairment on equity
investment 200 - - 200
Other non-cash changes 7 (9) 2 -
Net change in operating
assets and liabilities (2,041) (2,022) (1,932) (5,995)
--------- --------- -------- ---------
Net cash used in
operating activities (5,007) (5,860) (5,537) (16,404)
Investing Activities
Net sales of available-
for-sale investments 6,466 28,089 9,691 44,246
Acquisition of property,
plant and equipment (8) (121) (59) (188)
Proceeds from sales of
property, plant and
equipment - 379 - 379
Change in investments and
other assets 138 (14) 30 154
--------- --------- -------- ---------
Net cash provided
by investing activities 6,596 28,333 9,662 44,591
Financing Activities
Proceeds from issuance of
common stock 2,741 62 574 3,377
Collection of note
receivable from shareholder 169 - - 169
Repurchase of common stock
in the open market - - (16,595) (16,595)
--------- --------- -------- ---------
Net cash provided by
(used in) financing
activities 2,910 62 (16,021) (13,049)
--------- --------- -------- ---------
Increase (decrease) in cash
and cash equivalents 4,499 22,535 (11,896) 15,138
Cash and cash equivalents
at beginning of period 189,069 166,534 178,430 178,430
--------- --------- -------- ---------
Cash and cash equivalents
at end of period $193,568 $189,069 $166,534 $193,568
======== ======== ======== ========
Reconciliation of GAAP net
cash used in operating
activities to Non-GAAP net cash
used in operating activities:
GAAP net cash used in
operating activities $ (5,007) $ (5,860) (5,537) $(16,404)
Restructuring liabilities
at end of the period 17,249 18,353 19,888 17,249
Minus: Restructuring and
impairment charges
reflected in the P&L 1,775 2,118 36 3,929
Plus: Non-cash
restructuring and
impairment charges 540 2,009 74 2,623
Plus: In-kind reduction
in restructuring
liabilities - - 168 168
Minus: Restructuring
liabilities at beginning
of the period 18,353 19,888 21,388 21,388
-------- -------- -------- --------
Net cash used in
restructuring activities (2,339) (1,644) (1,294) (5,277)
--------- --------- -------- ---------
Non-GAAP net cash used in
operating activities $ (2,668) $ (4,216) $ (4,243) $(11,127)
======== ======== ======== ========
Contact:
New Focus, Inc.
William L. Potts, Jr., 408-919-5384
Source: New Focus |
