here's the full report including Abrizio's numbers.
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PMC-Sierra, Inc. Reports Third Quarter Results
Business Wire - October 14, 1999 16:16
BURNABY, B.C.--(BUSINESS WIRE)--Oct. 14, 1999--PMC-Sierra, Inc. (Nasdaq:PMCS) today reported net income and record revenue for the third quarter.
Net revenues in the third quarter of $71.6 million (US dollars) included networking semiconductor revenues of $66.4 million and non-networking product revenues of $5.2 million. Networking semiconductor revenue increased 21% over this year's second quarter and 83% over the third quarter of 1998.
Net income for the third quarter of $19.4 million or $0.25 per share (diluted) increased over 1998 net income of $0.13 per share (diluted), which excludes the 1998 write-down for impairment of intangibles of $8.8 million. The third quarter results for both 1999 and 1998 include the results of Abrizio, Inc. which was acquired during the quarter and was accounted for as a pooling of interests. The adjusted quarterly financials reflecting the pooling of interests are available on the PMC-Sierra web site.
"The highlight of the quarter was the acquisition of Abrizio", stated Bob Bailey, President and Chief Executive Officer. "The design wins already achieved with some very significant customers were key to our decision to complete the acquisition. We are pleased with the way the integration has gone to date. This enterprise should bring future benefits to help bolster PMC's position as a supplier of leading edge broadband semiconductors."
Year to date networking revenue of $168.9 million is 75% higher than during the first nine months of 1998 while non-networking revenue of $13.0 million declined by 34%. All development efforts over the last three years have been focused on the Company's networking semiconductors. The 1999 second quarter and year to date earnings include $26.8 million of pre-tax income related to the sale of investments. The 1998 third quarter and year to date results include $4.3 million and $43.5 million, respectively, of charges related to impairment of intangible assets and acquired in process research and development.
PMC-Sierra, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended
------------------------------
Sep 26, Jun 27, Sep 27,
1999 1999 1998
Net revenues $ 71,601 $ 59,887 $ 42,105
Cost of revenues 14,770 13,088 10,035
---------- --------- ---------
Gross profit 56,831 46,799 32,070
Other costs and expenses:
Research and development 16,863 14,706 10,085
Marketing, general and
administrative 10,347 9,749 7,400
Costs of merger 866 -- --
Amortization of deferred
stock compensation 591 671 417
Amortization of goodwill 313 313 327
Acquisition of in process
research and development -- -- --
Impairment of intangible assets -- -- 4,311
---------- --------- ---------
Income (loss) from operations 27,851 21,360 9,530
Other income, net 2,063 1,081 631
Gain on sale of investments -- 26,800 --
---------- --------- ---------
Income before provision for
income taxes 29,914 49,241 10,161
Provision for income taxes 10,471 12,272 5,632
---------- --------- ---------
Net income (loss) $ 19,443 $ 36,969 $ 4,529
========== ========= =========
Basic net income (loss) per share $ 0.28 $ 0.55 $ 0.07
========== ========= =========
Diluted net income (loss) per share $ 0.25 $ 0.50 $ 0.06
========== ========= =========
Shares used to calculate:
Basic net income (loss) per share 69,914 67,489 65,843
Diluted net income (loss) per share 77,324 73,762 70,244
Nine Months Ended
------------------------
Sep 26, Sep 27,
1999 1998
Net revenues $ 181,877 $ 116,375
Cost of revenues 38,832 28,138
----------- -----------
Gross profit 143,045 88,237
Other costs and expenses:
Research and development 44,105 24,027
Marketing, general and administrative 29,494 20,796
Costs of merger 866 --
Amortization of deferred stock
compensation 1,683 567
Amortization of goodwill 939 588
Acquisition of in process research
and development -- 39,176
Impairment of intangible assets -- 4,311
----------- -----------
Income (loss) from operations 65,958 (1,228)
Other income, net 4,200 2,055
Gain on sale of investments 26,800 --
----------- -----------
Income before provision for
income taxes 96,958 827
Provision for income taxes 29,470 16,469
----------- -----------
Net income (loss) $ 67,488 $ (15,642)
=========== ===========
Basic net income (loss) per share $ 0.99 $ (0.24)
=========== ===========
Diluted net income (loss) per share $ 0.90 $ (0.24)
=========== ===========
Shares used to calculate:
Basic net income (loss) per share 68,165 65,040
Diluted net income (loss) per share 74,586 65,040
(1) The net income per share and number of shares used in the per
share calculation for all periods presented reflect the
two-for-one stock split that was effective April 30, 1999.
(2) All items in both the 1998 and 1999 periods include the results
of the recent merger with Abrizio Inc., which was accounted for
as a pooling of interests.
PMC-Sierra, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Sep 26, Dec 27,
1999 1998
(unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $ 70,404 $ 38,507
Short-term investments 103,209 50,893
Accounts receivable, net 31,411 26,227
Inventories 6,545 3,617
Prepaid expenses and other current assets 4,764 4,045
Short-term deposits for wafer
fabrication capacity -- 4,000
----------- -----------
Total current assets 216,333 127,289
Property and equipment, net 39,795 32,452
Goodwill and other intangible assets, net 16,761 19,629
Investments and other assets 7,512 4,500
Deposits for wafer fabrication capacity 19,120 19,120
----------- -----------
$ 299,521 $ 202,990
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 13,736 $ 8,964
Accrued liabilities 18,455 14,694
Deferred income 27,308 12,517
Accrued income taxes 17,483 13,897
Current portion of obligations under
capital leases and long-term debt 2,074 5,111
----------- -----------
Total current liabilities 79,056 55,183
Deferred income taxes 2,752 2,851
Noncurrent obligations under capital
leases and long-term debt 1,627 5,894
Special shares convertible into PMC
common stock 7,217 8,387
Stockholders' equity:
Capital stock and additional
paid in capital 202,299 191,134
Deferred stock compensation (2,281) (1,822)
Retained earnings (accumulated deficit) 8,851 (58,637)
----------- -----------
Total stockholders' equity 208,869 130,675
----------- -----------
$ 299,521 $ 202,990
=========== ===========
(1) All items in both the 1998 and 1999 periods include the results
of the recent merger with Abrizio Inc., which was accounted for
as a pooling of interests.
PMC-Sierra, Inc.
SUPPLEMENTAL SCHEDULE - CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended Sep 26, 1999
--------------------------------------
Acquisition
PMC Abrizio Costs Combined
Net revenues
Networking $ 65,817 $ 600 $ -- $ 66,417
Non-networking 5,184 -- -- 5,184
-------- --------- ---------- --------
Total 71,001 600 -- 71,601
Gross profit $
Networking 53,926 600 -- 54,526
Non-networking 2,305 -- -- 2,305
-------- --------- ---------- --------
Total 56,231 600 -- 56,831
-------- --------- ---------- --------
Gross profit %
Networking 81.9% 100.0% -- 82.1%
Non-networking 44.5% -- -- 44.5%
Total 79.2% 100.0% -- 79.4%
Other costs and expenses:
Research and development 15,035 1,828 -- 16,863
Marketing, general and
administrative 10,114 233 -- 10,347
Costs of merger -- -- 866 866
Amortization of deferred
stock compensation -- 591 -- 591
Amortization of goodwill 313 -- -- 313
-------- --------- ---------- --------
Income (loss) from operations 30,769 (2,052) (866) 27,851
Other income, net 2,096 (33) -- 2,063
-------- --------- ---------- --------
Income (loss) before
provision for income taxes 32,865 (2,085) (866) 29,914
Provision for income taxes 10,471 -- -- 10,471
-------- --------- ---------- --------
Net income (loss) $ 22,394 $ (2,085) $ (866) $ 19,443
======== ========= ========== ========
Diluted net income per share $ 0.30 $ 0.25
Shares used to calculate
diluted net income per share 73,830 77,324
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