financials from previous:
CABLETRON SYSTEMS, INC.
Consolidated Condensed Statements of Operations (three months and
twelve months ended February 28, 1999 and 1998)
(in thousands, except per share data)
Fourth Quarter Twelve Months
Unaudited Unaudited
1999 1998 1999 1998
Net sales $345,073 $311,522 $1,411,279 $1,377,330
Cost of sales 193,197 168,943 811,353 645,790
Gross profit 151,876 142,579 599,926 731,540
Operating expenses:
R & D 50,760 47,194 210,393 181,777
S G & A 101,025 109,310 428,975 371,159
Fixed asset gain/loss 17,570 --- 17,570 ---
Special charges --- 417,685 224,650 417,685
Operating loss (17,479) (431,610) (281,662) (239,081)
Interest income 3,676 4,309 15,089 18,578
Loss from operations
before income taxes (13,803) (427,301) (266,573) (220,503)
Income tax benefit (5,550) (163,930) (26,595) (93,441)
Net loss ($8,253) ($263,371) ($239,978) ($127,062)
Net loss per share ($0.05) ($1.67) ($1.43) ($0.81)
Weighted average common
shares outstanding 172,161 158,172 167,432 157,686
Note: Included in the 1999 fourth quarter results is $17.6
million ($10.7 million, net of tax) of fixed asset loss for idle,
obsolete and discarded equipment. Included in the 1999 year end
results are $224.7 million ($213.8 million, net of tax) of special
charges which were for in process research and development for the
completion of acquisitions of NetVantage, Inc., FlowPoint, Inc., the
DSLAM division of Ariel Corporation and Yago Systems, Inc.. Excluding
the fixed asset loss, fourth quarter net income would have been $2.5
million or $.01 per share. Excluding special charges and the fixed
asset loss, fiscal 1999 net loss would have been $7.1 million or $.04
per share.
Note: Included in the 1998 fourth quarter and year end results
are $382.2 million ($235.5 million, net of tax) of nonrecurring items
related to the acquisition of Digital's Network Products Group in
February 1998 and a fourth quarter restructuring charge of $35.5
million ($21.5 million, net of tax). Excluding these one-time
expenses, fourth quarter net loss would have been $6.3 million or $.04
per share. Excluding these one-time expenses, fiscal 1998 net income
would have been $130.0 million or $.82 per share.
CABLETRON SYSTEMS, INC.
Consolidated Condensed Balance Sheets (February 28, 1999 and 1998)
(in thousands)
Unaudited
2/28/99 2/28/98
Assets
Cash & short-term investments $273,354 $324,057
Accounts receivable (net) 216,793 241,181
Inventories 229,512 309,667
Deferred taxes 53,488 81,161
Other assets 60,095 78,084
Total current assets 833,242 1,034,150
Investments 212,172 123,272
Property, plant & equipment (net) 188,478 244,730
Intangible Assets 84,752 36,867
Deferred taxes 197,574 167,308
Total assets $1,516,218 $1,606,327
Liabilities & Stockholders' Equity
Accounts payable $121,580 $79,969
Accrued liabilities 367,856 392,781
Total current liabilities 489,436 472,750
Long-term obligations - 132,500
Deferred taxes 6,717 12,057
Total liabilities 496,153 617,307
Stockholders' equity 1,020,065 989,020
Total liabilities & stockholders' equity $1,516,218 $1,606,327 |
