It appears that BRCD used some of their cash to buy their office building in San Jose. From their recent 10K filing.:"... Lease termination charge and other, net. During the three months ended January 24, 2004, we purchased a previously leased building located at our San Jose headquarters for $106.8 million in cash plus transaction costs, consisting of the purchase of land and building valued at $30.0 million and a lease termination fee of $76.8 million. The 194,000 square foot facility, which houses our engineering organization and development, test and interoperability laboratories, was previously leased. As a result of the building purchase, during the first quarter of fiscal year 2004, we recorded adjustments to the previously recorded facilities lease loss reserve and recorded a charge of $75.6 million primarily related to lease termination, facilities consolidation and other associated costs ..."
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I have not studied their balance sheet for about a year so I am going through it to see exactly how much cash they really do have on hand as well as other tangible assets. They expensed a huge lease termination fee of $75.6 million last quarter (purchase price $106 million of which $76 million was a lease termination fee).
Here is what they say as to how they have been using their cash:"... Net cash used in investing activities for the three months ended January 24, 2004 totaled $57.5 million and was the result of $21.3 million in net purchases of short and long-term investments and $36.2 million invested in capital equipment, including $30.0 million for building purchase at our San Jose headquarters. Net cash used in financing activities for the three months ended January 24, 2004 was $11.1 million, and was the result of repurchases of our convertible subordinated debt, partially offset by net proceeds from the issuance of common stock related to employee participation in employee stock programs and exercises of stock options...."
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Anybody calculate exactly how much cash they have per share after all of these adjustments (both new shares issued and restructuring fees)?
If they can generate a positive free flow cash flow (after this restructuring) and margins on the legacy products have bottomed out, they may be in a very good position to generate some decent earnings when they ramp up their next generation switch (and software) products.
EKS |
