take heart folks!!!!!!!!
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company had $188.1 million in cash, cash equivalents and short-term
investments and $232.1 million in working capital. This is an increase of $11.5 million in cash, cash
equivalents and short-term investments and $17.3 million in working capital over the December 31,
1997 amounts. These increases are primarily attributable to cash generated from operations of $11.1
million and $2.5 million from the exercise of stock options, offset by capital expenditures of $1.9
million. Accounts receivable increased to $37.4 million at March 31, 1998, compared to $35.4
million at December 31, 1997. This increase in receivables was primarily due to a larger proportion
of total revenue for the 1998 quarter being shipped during the last four weeks of the quarter. Gross
inventories increased $8.0 million to $58.7 million at March 31, 1998 compared to $50.6 million at
December 31, 1997. Approximately $4.5 million of the increase came from the purchase of long
lead-time integrated circuits including SPAROW II chips. In addition, finished goods inventory of
certain products increased $5.3 million. Reserves for inventory obsolescence, excess quantities, cost
reductions and test and evaluation inventories decreased to $19.3 million at March 31, 1998
compared to $20.1 million at December 31, 1997. The primary reason for the decrease in these
reserves was the disposal of obsolete inventory. As a result of the increase in gross inventories, net
inventory turns decreased to four times for the first quarter of 1998 versus six times in the 1997
quarter.
Pairgain will be around for a few more days! They are not going away!!! |
