LSI LOGIC CORPORATION
Reconciliation of Net Loss Excluding Special Items to GAAP Results
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, March 31,
2003 2002
Net loss excluding special items $(50,833) $(42,361)
Special items:
Additional excess inventory and
related charges -- (40,754)
Amortization of acquisition related
items including intangibles and
non-cash deferred stock compensation (30,668) (46,078)
Restructuring of operations and other
items, net (35,666) (65,060)
Other special items (5,258) --
Tax benefit -- 22,500
Total special items (71,592) (129,392)
Net loss $(122,425) $(171,753)
Basic loss per share:
Net loss excluding special items $(0.14) $(0.12)
Special items ** (0.19) (0.35)
Net loss $(0.33) $(0.47)
Diluted loss per share*:
Net loss excluding special items $(0.14) $(0.12)
Special items ** (0.19) (0.35)
Net loss $(0.33) $(0.47)
Shares used in computing per share
amounts:
Basic 374,628 367,578
Diluted 374,628 367,578
* In computing diluted loss per share for the three month periods ended
March 31, 2003 and 2002, all common stock equivalents were excluded as
a result of their antidilutive effect.
** This line item includes rounding adjustments.
LSI LOGIC CORPORATION
Consolidated Condensed Statements of Operations
(GAAP)
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, March 31,
2003 2002
Revenues $372,785 $412,509
Costs and expenses:
Cost of revenues:
Cost of revenues 248,068 265,909
Additional excess inventory
and related charges -- 40,754
Research and development 115,127 114,343
Selling, general and administrative 57,629 58,180
Restructuring of operations and other
items, net 35,666 65,060
Amortization of acquisition related
items including intangibles and
non-cash deferred stock compensation* 30,668 46,078
Total costs and expenses 487,158 590,324
Loss from operations (114,373) (177,815)
Interest expense (8,831) (15,834)
Interest income and other, net 6,779 3,646
Loss before income taxes (116,425) (190,003)
Provision/ (benefit) for income taxes 6,000 (18,250)
Net loss $(122,425) $(171,753)
Loss per share:
Basic $(0.33) $(0.47)
Diluted ** $(0.33) $(0.47)
Shares used in computing per share
amounts:
Basic 374,628 367,578
Diluted 374,628 367,578
* The amortization of acquisition related items including intangibles
and non-cash deferred stock compensation for the three month period
ended March 31, 2003 are comprised of the following items:
Amortization of intangibles $20,125
Amortization of non-cash deferred
stock compensation 10,543
$30,668
** In computing diluted loss per share for the three month periods ended
March 31, 2003 and 2002, all common stock equivalents were excluded as
a result of their antidilutive effect.
LSI LOGIC CORPORATION
Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)
March 31, Dec. 31,
Assets 2003 2002
Current assets:
Cash and short-term investments $1,004.8 $990.0
Accounts receivable, net 225.3 248.6
Inventories 206.7 194.5
Prepaid expenses and other current assets 205.8 193.0
Total current assets 1,642.6 1,626.1
Property and equipment, net 611.0 747.0
Goodwill and other intangibles 1,206.8 1,251.0
Other assets 636.5 518.6
Total assets $4,096.9 $4,142.7
Liabilities and Stockholders' Equity
Current liabilities:
Other current liabilities $399.4 $397.4
Current portion of long-term debt, capital
lease obligations and short-term borrowings 328.5 0.4
Total current liabilities 727.9 397.8
Long-term debt and capital lease obligations 911.0 1,241.2
Deferred tax and other long-term liabilities 260.1 196.9
Total liabilities 1,899.0 1,835.9
Minority interest in consolidated subsidiaries 6.6 6.5
Stockholders' equity:
Common stock 2,958.0 2,958.0
Deferred stock compensation (40.6) (51.2)
Accumulated deficit (734.6) (612.2)
Accumulated other comprehensive income 8.5 5.7
Total stockholders' equity 2,191.3 2,300.3
Total liabilities and stockholders'
equity $4,096.9 $4,142.7
LSI LOGIC CORPORATION
Statement of Cash Flows
(In thousands, except where noted)
(Unaudited)
Three Months Ended
March 31, March 31,
2003 2002
Operating Activities:
Net loss $(122,425) $(171,753)
Adjustments:
Depreciation & amortization 87,058 88,899
Amortization of non-cash deferred stock
compensation 10,543 26,921
Non-cash restructuring and non-recurring
items, net 29,754 56,901
Loss on write down of equity securities,
net 7,006 --
Gain on sale of property and equipment (1,703) --
Changes in deferred tax assets and
liabilities (410) 170
Changes in assets and liabilities
Accounts receivable, net 24,160 (30,520)
Inventories, net (11,866) 59,328
Prepaid expenses and other assets (336) (23,154)
Accounts payable (1,106) (33,632)
Accrued and other liabilities 1,205 (8,161)
Net cash provided by/(used in) operating
activities 21,880 (35,001)
Investing activities:
Purchases of debt and equity securities
available-for-sale (857,231) (551,620)
Maturities and sales of debt and equity
securities available-for-sale 885,609 324,443
Purchases of equity securities -- (1,394)
Proceeds from sale/ (purchases) of
property and equipment, net 148,923 (4,751)
Increase in non-current assets and
deposits (150,410) (6,847)
Net cash provided by/ (used in) investing
activities 26,891 (240,169)
Financing activities:
Repayment of debt obligations (88) (108)
Issuance of common stock, net 242 1,622
Net cash provided by financing activities 154 1,514
Effect of exchange rate changes on cash and cash
equivalents 756 1,631
Increase/ (decrease) in cash and cash
equivalents 49,681 (272,025)
Cash and cash equivalents at beginning of
period 448,847 757,138
Cash and cash equivalents at end of period $498,528 $485,113
LSI LOGIC CORPORATION
Selected Financial Information (GAAP)
(In millions, except where noted)
(Unaudited)
Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2003 2002 2002
Semiconductor revenues $273.1 $373.8 $352.6
Storage Systems revenues $99.7 $105.9 $59.9
Total revenues $372.8 $479.7 $412.5
Percentage change in
revenues-qtr./qtr. (a) -22.3% -1.5% 1.7%
Percentage change in
revenues-yr./yr. (b) -9.6% 18.2% -20.2%
Days sales outstanding 54 47 48
Days of inventory 75 59 58
Current ratio 2.3 4.1 3.4
Quick ratio 1.7 3.1 2.4
R&D as a percentage of revenues 30.9% 24.1% 27.7%
SG&A as a percentage of revenues 15.5% 11.6% 14.1%
Gross margin as a percentage of
revenues 33.5% 37.7% 25.7%
Employees (c) 5,323 5,534 5,632
Revenues per employee (in thousands)
(d) $280.1 $346.7 $293.0
Diluted shares (in thousands) 374,628 372,680 367,578
Selected Cash Flow information
Purchase of property and
equipment (e) $14.7 $17.1 $10.4
Depreciation/amortization (f) $61.1 $58.8 $64.5
In-process research and development $-- $1.0 $--
Issuance of common stock for
employee stock purchase and option
programs $0.2 $17.7 $1.6
(a) Represents sequential quarter growth in revenues.
(b) Represents growth in revenues in the quarter presented as compared to
the same quarter of the previous year.
(c) Actual number of employees at the end of each period presented.
(d) Revenue per employee is calculated by annualizing revenue for each
quarter presented and dividing it by the number of employees.
(e) Represents gross addition of property and equipment.
(f) Represents depreciation of fixed assets and amortization of software.
Excludes amortization of intangibles and non-cash deferred stock
compensation.
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Source: LSI Logic Corporation
