Novellus Systems Reports Results for the First Quarter 2003 - Part II
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(EXCLUDING CERTAIN UNUSUAL CHARGES AND BENEFITS) (1)
(In thousands, except
per share amounts) Three Months Ended
(Unaudited) March 29 December 31 March 30
2003 2002 2002
Net sales $238,410 $217,637 $169,679
Cost of sales 128,596 121,589 98,149
Gross profit 109,814 96,048 71,530
% 46.1% 44.1% 42.2%
Operating expenses:
Selling, general and
administrative 42,631 36,868 34,686
Research and development 57,006 51,323 54,046
Total operating expenses 99,637 88,191 88,732
% 41.8% 40.5% 52.3%
Income (loss) from operations 10,177 7,857 (17,202)
% 4.3% 3.6% -10.1%
Other income, net 5,652 7,328 13,066
Income (loss) before
income taxes 15,829 15,185 (4,136)
Provision (benefit) for
income taxes 3,957 1,229 (868)
Net income (loss) $11,872 $13,956 $(3,268)
Net income per share:
Basic net income
(loss) per share $0.08 $0.10 $(0.02)
Diluted net income
(loss) per share $0.08 $0.09 $(0.02)
Shares used in basic
per share calculation 149,434 144,416 144,255
Shares used in diluted
per share calculation 152,229 147,219 144,255
A reconciliation of our
net income (loss) excluding
certain unusual charges
and benefits to our
net income (loss)
under accounting principles
generally accepted in the
United States of America
is presented below:
Net income (loss)
excluding unusual charges
and benefits $11,872 $13,956 $(3,268)
Unusual benefits (charges):
Acquired in-process
research and development -- (9,003) --
Severance charges -- (3,194) (3,272)
Bad debt recovery -- -- 7,662
Gain on a sale of investment -- --- 4,602
Total benefits (charges) -- (12,197) 8,992
Adjustments on provision
for income taxes -- 1,229 (1,888)
Net income $11,872 $2,988 $3,836
(1) The condensed consolidated statements of operations (excluding certain unusual charges and benefits) are intended to present our operating results, excluding certain unusual charges, benefits and related adjustments on provisions for income taxes. These condensed consolidated statements of operations are not in accordance with or an alternative for accounting principles generally accepted in the United States of America and may be different from similar measures by other companies.
NOVELLUS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) March 29 December 31
2003 2002
(Unaudited) *
ASSETS
Current assets:
Cash and short-term investments $929,800 $1,019,652
Accounts receivable, net 203,639 192,862
Inventories 253,040 257,358
Deferred taxes and other current assets 140,005 164,062
Total current assets 1,526,484 1,633,934
Property and equipment, net 174,301 179,926
Notes receivable 397,429 397,429
Goodwill 163,136 163,136
Intangible and other assets 114,639 119,569
Total assets $2,375,989 $2,493,994
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $169,344 $192,691
Deferred profit 60,449 55,613
Income taxes payable 6,401 14,070
Short-term obligations -- 2,799
Convertible subordinated debentures -- 116,437
Total current liabilities 236,194 381,610
Deferred income tax liabilities 20,192 19,502
Other liabilities 37,181 37,194
Total liabilities 293,567 438,306
Shareholders' equity:
Common stock 1,503,540 1,487,281
Retained earnings and accumulated other
comprehensive income 578,882 568,407
Total shareholders' equity 2,082,422 2,055,688
Total liabilities and shareholders' equity $2,375,989 $2,493,994
The December 31, 2002 condensed consolidated balance sheet was derived from our audited consolidated financial statements.
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Source: Novellus Systems, Inc.
