Let's refresh how they did last quarter:
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
Net revenue $113,122 $115,069 $441,609 $491,232
Costs and expenses:
Cost of revenue 52,516 55,504 234,497 281,232
Research and development 15,079 16,683 61,490 57,876
Sales, marketing and service 34,028 37,409 140,997 154,601
General and administrative 6,541 5,347 26,922 25,789
Impairment of acquired
intangible assets -- -- 89,752 --
Amortization of deferred stock
compensation, goodwill and
purchased intangible assets 2,288 15,429 47,372 37,530
Restructuring and
special charges -- 2,077 73,570 36,097
Total costs and expenses 110,452 132,449 674,600 593,125
Operating income (loss) 2,670 (17,380) (232,991) (101,893)
Other income (loss), net 922 1,823 (3,811) 10,342
Income (loss)
before income taxes 3,592 (15,557) (236,802) (91,551)
Provision (benefit)
for income taxes 1,095 (4,194) (52,840) (22,668)
Net income (loss) $2,497 $(11,363) $(183,962) $(68,883)
Net income (loss) per share
- basic $0.02 $(0.10) $(1.63) $(0.64)
Net income (loss) per share
- diluted $0.02 $(0.10) $(1.63) $(0.64)
Shares used in per share
calculation - basic 113,785 111,114 112,925 108,353
Shares used in per share
calculation - diluted 117,190 111,114 112,925 108,353
Table B
EXTREME NETWORKS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (i)
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
Net revenue $113,122 $115,069 $441,609 $491,232
Costs and expenses:
Cost of revenue 52,516 55,504 207,823 240,902
Research and development 15,079 16,683 61,490 57,876
Sales, marketing and
service 34,028 37,409 140,997 154,601
General and administrative 6,541 5,347 24,222 24,789
Total costs and expenses 108,164 114,943 434,532 478,168
Operating income 4,958 126 7,077 13,064
Other income, net 922 1,823 5,846 11,201
Income before income taxes 5,880 1,949 12,923 24,265
Provision for income taxes 2,058 682 4,523 8,464
Net income $3,822 $1,267 $8,400 $15,801
Net income per share - basic $0.03 $0.01 $0.07 $0.15
Net income per share - diluted $0.03 $0.01 $0.07 $0.13
Shares used in per share
calculation - basic 113,785 111,114 112,925 108,353
Shares used in per share
calculation - diluted 117,190 119,220 117,333 118,799
(i) This statement of operations information for the three and twelve
month periods ended June 30, 2001 and 2002 is for illustrative
purposes only and is not prepared in accordance with generally
accepted accounting principles. The following table reconciles our
GAAP net income (loss) from Table A to our pro forma net income in
Table B:
Three Months Ended Year Ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
GAAP net income (loss) $2,497 $(11,363) $(183,962) $(68,883)
Pro forma adjustments:
Charges related to contract
manufacturers and other
costs associated with carrying
value of inventory -- -- 26,674 40,330
Impairment of acquired
intangible assets -- -- 89,752 --
Amortization of deferred stock
compensation, goodwill and
purchased intangible assets 2,288 15,429 47,372 37,530
In-process research and
development -- -- -- 30,142
Restructuring and special
charges -- 2,077 85,927 7,814
Income tax benefit (963) (4,876) (57,363) (31,132)
Pro forma net income $3,822 $1,267 $8,400 $15,801
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, June 30,
2002 2001
Assets
Current assets:
Cash, cash equivalents and investments $236,497 $157,096
Accounts receivable, net 51,344 63,211
Inventories, net 24,627 60,529
Deferred taxes 42,882 35,855
Other current assets 13,126 12,061
Total current assets 368,476 328,752
Property and equipment, net 99,551 57,251
Restricted investments -- 80,000
Marketable securities 163,560 34,406
Goodwill and purchased intangible assets, net 1,021 113,886
Deferred taxes 90,617 40,028
Other assets 12,526 12,025
Total assets $735,751 $666,348
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $29,215 $35,890
Deferred revenue 40,772 25,537
Other accrued liabilities 76,534 55,893
Total current liabilities 146,521 117,320
Convertible subordinated notes and other
long-term deposit 200,272 266
Total stockholders' equity 388,958 548,762
Total liabilities and stockholders' equity $735,751 $666,348
EXTREME NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended
June 30, June 30,
2002 2001
Operating activities:
Net loss $(183,962) $(68,883)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation 31,491 19,328
Amortization of goodwill and purchased
intangible assets 37,188 33,387
Impairment of acquired intangible assets 89,752 --
Provision for doubtful accounts 2,700 5,274
Deferred income taxes (56,771) (64,173)
In-process research and development -- 30,142
Tax benefits from employee stock transactions 1,055 45,020
Restructuring and one-time charges 73,095 --
Amortization of deferred stock compensation 10,184 4,143
Equity share of affiliate losses and
write-down of investments 9,657 4,942
Loss on retirement of assets -- 2,886
Compensation expense for options granted to
consultants 840 841
Changes in operating assets and liabilities:
Accounts receivable 9,167 (20,016)
Inventories 35,902 (36,728)
Other current and noncurrent assets (4,760) (2,950)
Accounts payable (6,675) (3,262)
Deferred revenue 15,235 35,330
Other accrued liabilities (43,311) 10,066
Net cash provided by (used in) operating
activities 20,787 (4,653)
Investing activities:
Capital expenditures (82,928) (51,224)
Purchases and maturities of investments (143,365) 8,398
Acquisition of business, net of cash assumed (14,920) 1,179
Minority investments -- (7,750)
Net cash used in investing activities (241,213) (49,397)
Financing activities:
Proceeds from issuance of common stock 10,997 25,051
Proceeds from issuance of convertible
subordinated notes, net 193,537 --
Net cash provided by financing activities 204,534 25,051
Net decrease in cash and cash equivalents (15,892) (28,999)
Cash and cash equivalents at beginning of year 87,722 116,721
Cash and cash equivalents at end of year $71,830 $87,722 |
