PACKETEER, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2001 2000 2001 2000
-------- -------- -------- --------
Net revenues $ 10,928 $ 11,504 $ 35,197 $ 27,772
Cost of revenues 3,158 3,530 10,900 8,642
-------- -------- -------- --------
Gross profit 7,770 7,974 24,297 19,130
Operating expenses:
Research and development 3,292 2,265 9,162 6,005
Sales and marketing 5,232 5,181 16,886 13,246
General and administrative 1,435 1,238 4,291 3,502
-------- -------- -------- --------
Total operating expenses 9,959 8,684 30,339 22,753
-------- -------- -------- --------
Pro forma loss from
operations(a) (2,189) (710) (6,042) (3,623)
Other income, net 696 938 1,703 2,551
-------- -------- -------- --------
Pro forma net
income (loss)(a) $ (1,493) $ 228 $ (4,339) $ (1,072)
======== ======== ======== ========
Pro forma diluted net
income (loss)
per share(a) $ (0.05) $ 0.01 $ (0.15) $ (0.04)
======== ======== ======== ========
Shares used in computing
pro forma net income
(loss) per share(a) 29,678 30,277 29,450 26,623
======== ======== ======== ========
(a) Pro forma excludes acquisition related intangible amortization and
stock-based compensation charges, as well as impairment charges
related to goodwill and other intangible assets
Note 1: The above pro forma condensed consolidated statements of
operations is not a presentation in accordance with generally accepted
accounting principles as it excludes the effects of the following (in
thousands):
During the nine months ended September 30, 2001, amortization of
acquired technology related to cost of revenues was $1,199, as a
result of the acquisition of Workfire Technologies International, Inc.
During the three and nine months ended September 30, 2000,
amortization of acquired technology related to cost of revenues was
$78, as a result of the acquisition of Workfire Technologies
International, Inc.
During the nine months ended September 30, 2001, amortization of
assembled workforce related to research and development was $47, as a
result of the acquisition of Workfire Technologies International, Inc.
During the three and nine months ended September 30, 2001,
amortization of deferred stock compensation related to operating
expenses was $237 and $1,001, respectively. During the three and nine
months ended September 30, 2000, amortization of deferred stock
compensation related to operating expenses was $375 and $1,098,
respectively.
During the nine months ended September 30, 2001, amortization of
goodwill related to operating expense was $11,017, as a result of the
acquisition of Workfire Technologies International, Inc. During the
three and nine months ended September 30, 2000, amortization of
goodwill related to operating expense was $916, as a result of the
acquisition of Workfire Technologies International, Inc.
During the three and nine months ended September 30, 2001, impairment
of goodwill and other intangible assets related to operating expenses
was $52,552, as a result of a review of the Company's long-lived
assets pursuant to SFAS 121.
PACKETEER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
------------- -------------
2001 2000 2001 2000
-------- -------- -------- --------
Net revenues $ 10,928 $ 11,504 $ 35,197 $ 27,772
Cost of revenues 3,158 3,530 10,900 8,642
Amortization of acquired
technology -- 78 1,199 78
-------- -------- -------- --------
Total cost of revenues 3,158 3,608 12,099 8,720
Gross profit 7,770 7,896 23,098 19,052
Operating expenses:
Research and development 3,292 2,265 9,209 6,005
Sales and marketing 5,232 5,181 16,886 13,246
General and administrative 1,435 1,238 4,291 3,502
Amortization of goodwill -- 916 11,017 916
Impairment of goodwill and
intangibles 52,552 -- 52,552 --
Stock-based compensation 237 375 1,001 1,098
-------- -------- -------- --------
Total operating expenses 62,748 9,975 94,956 24,767
-------- -------- -------- --------
Loss from operations (54,978) (2,079) (71,858) (5,715)
Other income, net 696 938 1,703 2,551
-------- -------- -------- --------
Net loss $(54,282) $ (1,141) $(70,155) $ (3,164)
======== ======== ======== ========
Basic and diluted net loss
per share $ (1.83) $ (0.04) $ (2.38) $ (0.12)
======== ======== ======== ========
Shares used in computing
basic and diluted net
loss per share 29,678 27,248 29,450 26,623
======== ======== ======== ========
PACKETEER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, December 31,
2001 2000
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 50,129 $ 24,273
Short-term investments 4,605 32,183
Accounts receivable, net 5,896 7,600
Inventories 1,730 2,554
Prepaids and other current assets 1,505 2,281
-------- --------
Total current assets 63,865 68,891
Property and equipment, net 1,789 2,529
Long-term investments 6,694 5,750
Other long-term assets(b) 232 67,111
-------- --------
Total assets $ 72,580 $144,281
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Lines of credit $ 1,249 $ 3,679
Current portion of capital lease
obligations and note payable 925 801
Accounts payable 1,567 2,663
Accrued compensation 1,913 2,410
Other accrued liabilities 3,491 4,013
Deferred revenue 4,539 3,367
-------- --------
Total current liabilities 13,684 16,933
Long-term liabilities 1,638 3,215
Common stock and additional paid-in capital 164,185 162,147
Accumulated other comprehensive income 126 77
Deferred stock-based compensation (625) (1,715)
Notes receivable from stockholders (83) (186)
Accumulated deficit (106,345) (36,190)
-------- --------
Total stockholders' equity 57,258 124,133
-------- --------
Total liabilities and
stockholders' equity $ 72,580 $144,281
======== ========
(b) Balance at December 31, 2000 includes goodwill and other
intangibles
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