3Com Corporation
Consolidated Statements of Income
(Unaudited. In thousands, except per share data)
Three Months Ended Nine Months Ended
March 1, Feb. 28, March 1, Feb. 28,
1998 1997 1998 1997
Sales $1,250,191 $1,462,891 $4,044,896 $4,234,334
Cost of Sales 707,188 725,116 2,183,961 2,175,625
Gross margin 543,003 737,775 1,860,935 2,058,709
Operating expenses: Sales and
marketing 315,174 290,607 955,886 766,244
Research and
development 144,237 135,264 432,013 346,645
General and
administrative 67,775 63,623 201,905 169,776
Purchased in-process
technology - - - 54,000
Merger-related
charges (credits) 258,632 (9,926) - 6,600
Total operating
expenses 517,260 489,494 1,848,436 1,343,265
Operating income 25,743 248,281 12,499 715,444
Other income
(expense), net 10,300 (4,423) 4,490 6,175
Income before
income taxes 21,320 252,771 18,674 725,744
Income tax provision 7,462 73,667 52,028 266,998
Net income (loss) $ 13,858 $ 179,104 $ (33,354) $ 458,746
Earnings per share
Basic $ 0.04 $ 0.54 $ (0.10) $ 1.39
Diluted $ 0.04 $ 0.50 $ (0.10) $ 1.30-0-
Net income for the quarter ended March 1, 1998 includes a pre-tax
credit of approximately $9.9 million ($0.02 per share) associated with
the merger with U.S. Robotics, Inc. (U.S. Robotics). Excluding this
credit, pro forma net income was $7.4 million ($0.02 per share). Net
income for the quarter ended February 28, 1997 included a tax benefit
of approximately $17.9 million ($0.05 per share) associated with U.S.
Robotics' acquisition of Scorpio Communications, Ltd (Scorpio).
Excluding this tax benefit, pro forma net income was $161.2 million
($0.45 per share).
Net income for the nine months ended March 1, 1998 included a
pre-tax charge of approximately $258.6 million ($0.59 per share)
associated with the merger with U.S. Robotics. Excluding this charge,
pro forma net income was $180.2 million ($0.49 per share). Net income
for the nine months ended February 28, 1997 included a charge of
approximately $54.0 million ($0.15 per share) for purchased in-process
technology associated with U.S. Robotics' acquisition of Scorpio, a
charge of approximately $6.6 million ($0.02 per share) associated with
3Com's acquisition of OnStream Networks, Inc. and a tax benefit of
approximately $17.9 million ($0.05 per share) associated with U.S.
Robotics' acquisition of Scorpio. Excluding these charges and benefit,
pro forma net income was $501.4 million ($1.42 per share).-0- |
