To supplement our condensed consolidated financial statements presented on a GAAP basis, ChipPAC uses a non-GAAP measure of net income (loss), which is adjusted to exclude certain amounts referred to as special items. We believe that our non-GAAP net loss measure gives an indication of our baseline performance before other charges that are considered by management to be outside of our core operating results. In addition, our non-GAAP net income (loss) measure is among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information should not be considered in isolation or as a substitute for net loss prepared in accordance with generally accepted accounting principles in the United States of America.
Three Months Ended
March 31, March 31,
2004 2003
Net income (loss) $(764) $(9,664)
Special Item
Merger-related charges 3,330 -
Total special item 3,330 -
Net income (loss), excluding special item $2,566 $(9,664)
Non-GAAP condensed consolidated statements of operations are intended to
present the Company's operating results, excluding the special item.
During the three months ended March 31, 2004, the special item excluded
was direct expenses incurred related to our merger activity.
ChipPAC, Inc.
Non-GAAP Condensed Consolidated Statements of Operations
Excludes Special Items
(In thousands, except for per share amounts)
(Unaudited)
Three Months Ended
March 31, March 31,
2004 2003
Revenue $126,948 $88,568
Cost of revenue 103,963 78,527
Gross profit 22,985 10,041
Operating expenses:
Selling, general and administrative 9,146 9,466
Research and development 2,984 2,854
12,130 12,320
Operating income (loss) 10,855 (2,279)
Non-operating expenses 7,789 6,885
Income (loss) before income taxes 3,066 (9,164)
Provision for income taxes 500 500
Net income (loss), excluding special items $2,566 $(9,664)
Net income (loss), excluding special items
per share
Basic $0.03 $(0.10)
Diluted $0.03 $(0.10)
Weighted average shares used in
per share calculation:
Basic 97,652 94,398
Diluted 101,716 94,398
Key Ratios & Information:
Gross Margin 18.1% 11.3%
Operating Expenses as a % of Revenue 9.6% 13.9%
Operating Margin 8.6% (2.6)%
Depreciation & Amortization Expense 19,584 16,029
Capital Expenditures 34,376 9,757
The format presented above is not in accordance with Generally Accepted
Accounting Principles.
See Statement of Reconciliation of U.S. GAAP Net Loss to Non-GAAP Net
Income (Loss) and notes to the reconciliation.
ChipPAC, Inc.
Condensed Consolidated Balance Sheets
(In thousands - Unaudited)
March 31, December 31,
2004 2003
Assets
Current assets:
Cash and short-term investments $31,007 $59,708
Accounts receivable, net 66,614 56,728
Inventories 24,719 26,060
Other current assets 7,734 7,411
Total current assets 130,074 149,907
Property and equipment, net 413,203 397,267
Other non-current assets,
including intangibles 31,452 32,157
Total assets $574,729 $579,331
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $63,485 $69,251
Other current liabilities 25,530 27,724
Total current liabilities 89,015 96,975
Long-term debt 165,000 165,000
Convertible subordinated notes 200,000 200,000
Other long-term liabilities 21,260 22,313
Total long-term liabilities 386,260 387,313
Total liabilities 475,275 484,288
Stockholders' equity 99,454 95,043
Total liabilities and
stockholders' equity $574,729 $579,331
