(1) As a result of our adoption of SFAS 123(R) on April 2, 2006, share- based compensation expense of approximately $0.9 million, $1.1 million, $0.6 million, $0.6 million, and $0.0 million is included in cost of goods sold, research and development, marketing and selling, general and administrative and other operating expense, respectively, for the three months ended March 31, 2007. For the three months ended April 1, 2006, share-based compensation and variable accounting expense of approximately $3.0 million, $11.1 million, $4.2 million, $2.6 million, and $0.0 million is included in cost of goods sold, research and development, marketing and selling, general and administrative and other operating expense, respectively.
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Twelve Months Ended
March 31, 2007 April 1, 2006
(Unaudited) (Audited)
Total revenue $1,023,615 $770,247
Costs and expenses:
Cost of goods sold(1) 666,755 501,224
Research and development(1) 184,979 168,858
Marketing and selling(1) 53,863 52,121
General and administrative(1) 37,301 29,589
Other operating income (1) (33,834) (251)
Total costs and expenses(1) 909,064 751,541
Operating income 114,551 18,706
Impairment of Jazz Semiconductor,
Inc. investment (33,959) -
Other income 5,807 1,505
Income before income taxes $86,399 $20,211
Income tax expense (2,983) (3,881)
Net income $83,416 $16,330
Net income per share, diluted $0.39 $0.08
Weighted average outstanding diluted shares 226,513 192,781
(1) As a result of our adoption of SFAS 123(R) on April 2, 2006, share- based compensation expense of approximately $4.7 million, $5.6 million, $3.7 million, $7.0 million, and $0.1 million is included in cost of goods sold, research and development, marketing and selling, general and administrative and other operating income, respectively, for the twelve months ended March 31, 2007. For the twelve months ended April 1, 2006, share-based compensation and variable accounting expense of approximately $3.8 million, $12.3 million, $5.5 million, $3.5 million, and $0.0 million is included in cost of goods sold, research and development, marketing and selling, general and administrative and other operating income, respectively.
RF MICRO DEVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, December 30, April 1,
2007 2006 2006
GAAP operating income (loss) 21,435 66,069 (1,689)
Share-based compensation
expense 3,088 3,320 20,943
Amortization of intangible
assets 567 484 457
Gain on sale of Bluetooth(R)
assets (67) (36,311) -
Restructuring charges related
to sale of Bluetooth(R)
assets 668 1,752 -
Discontinuation of WLAN
chipset development efforts
(adjustment) 26 (100) 53
Non-GAAP operating income 25,717 35,214 19,764
GAAP net income (loss) 30,133 59,326 (1,568)
Impairment of Jazz
investment 94 - -
Share-based compensation
expense 3,088 3,320 20,943
Amortization of intangible
assets 567 484 457
Gain on sale of Bluetooth(R)
assets (67) (36,311) -
Restructuring charges related
to sale of Bluetooth(R)
assets 668 1,752 -
Tax effect on certain Non-GAAP
adjustments (5,316) 5,872 -
Discontinuation of WLAN
chipset development
efforts (adjustment) 26 (100) 53
Non-GAAP net income 29,193 34,343 19,885
Plus: Income impact of assumed
conversions for interest on
1.50% convertible notes 1,015 977 1,060
Non-GAAP net income plus
assumed conversion of notes-
Numerator for diluted
income per share $30,208 $35,320 $20,945
GAAP weighted average
outstanding diluted shares 228,937 227,852 189,599
Adjustments:
Diluted stock options - - 6,002
Assumed conversion of 1.50%
convertible notes - - 30,144
Non-GAAP weighted average
outstanding diluted shares 228,937 227,852 225,745
Non-GAAP net income per share,
diluted $0.13 $0.16 $0.09
GAAP gross margin percentage 35.2% 35.8% 33.6%
Adjustment for share-based
compensation 0.3% 0.3% 1.3%
Adjustment for intangible
amortization 0.2% 0.0% 0.1%
Non-GAAP gross margin percentage 35.7% 36.1% 35.0%
RF MICRO DEVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, April 1,
2007 2006
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $211,023 $81,588
Short-term investments 107,689 68,949
Accounts receivable, net 102,307 115,715
Inventories 112,975 116,782
Other current assets 46,445 31,887
Total current assets 580,439 414,921
Property and equipment, net 373,455 341,293
Goodwill 114,897 117,218
Investment in Jazz Semiconductor, Inc. - 59,265
Long-term investments 617 584
Intangible assets, net 8,486 10,849
Other assets 11,740 3,191
Total assets $1,089,634 $947,321
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $108,929 $102,772
Other short-term liabilities, net 4,287 260
Total current liabilities 113,216 103,032
Long-term debt, net 245,709 226,876
Other long-term liabilities 11,042 18,056
Total liabilities 369,967 347,964
Shareholders' equity:
Total shareholders' equity 719,667 599,357
Total liabilities and shareholders'
equity $1,089,634 $947,321
Web site: http://www.rfmd.com/
