Conference Call Today
Financial analysts, members of the media, and the public are invited to participate in a conference call that will take place today at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time. Scott Mercer, chief executive officer, Christian Scherp, president, and Karen Roscher, senior vice president and chief financial officer, will discuss third fiscal quarter financial results and the company’s fourth-quarter outlook.
To listen to the conference call via telephone, dial 866-650-4882 (in the US and Canada) or 706-679-7338 (from other international locations); participant pass code: Conexant; Conference ID number: 55288051. To listen via the Internet, visit the Investor Relations section of Conexant's Web site at www.conexant.com/ir. Playback of the conference call will be available shortly after the call concludes and will be accessible on Conexant's Web site at www.conexant.com/ir or by calling 800-642-1687 (in the US and Canada) or 706-645-9291 (from other international locations); pass code: 55288051.
About Conexant
Conexant’s comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of $809 million in fiscal year 2007. The company is headquartered in Newport Beach, Calif. To learn more, please visit www.conexant.com.
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Conexant or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.
These risks and uncertainties include, but are not limited to: pricing pressures and other competitive factors; our ability to timely develop and implement new technologies and to obtain protection for the related intellectual property; the cyclical nature of the semiconductor industry and the markets addressed by our products and our customers’ products; volatility in the technology sector and the semiconductor industry; our successful development of new products; the timing of our new product introductions and our product quality; demand for and market acceptance of our new and existing products; our ability to anticipate trends and develop products for which there will be market demand; the availability of manufacturing capacity; changes in our product mix; product obsolescence; the ability of our customers to manage inventory; the risk that capital needed for our business and to repay our indebtedness will not be available when needed; the risk that the value of our common stock may be adversely affected by market volatility; the substantial losses we have incurred; the uncertainties of litigation, including claims of infringement of third-party intellectual property rights or demands that we license third-party technology, and the demands it may place on the time and attention of our management and the expense it may place on our company; general economic and political conditions and conditions in the markets we address; and possible disruptions in commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings.
The forward-looking statements are made only as of the date hereof. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.
|
CONEXANT SYSTEMS, INC. Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures (unaudited, in thousands, except per share amounts) |
||||||||||||||||||||
|
Three Months Ended
June 27, 2008 |
||||||||||||||||||||
|
GAAP |
Core Adjustments |
Non-GAAP Core |
BMP Adjustments |
Non-GAAP Core including BMP |
Third Quarter 2008 Guidance |
|||||||||||||||
| Net revenues | $ | 115,594 | $ | — | $ | 115,594 | $ | 55,479 (m) | $ | 171,073 | $167,000 to $171,000 | |||||||||
|
Gross margin |
$ |
58,408 |
$ |
42 (a ) |
$ |
58,450 |
$ |
22,133 (m ) |
$ |
80,583 |
||||||||||
| Gross margin percentage | 50.5 | % | 50.6 | % | 47.1 | % |
44.5% - 45.5% |
|||||||||||||
|
Gross margin |
$ |
58,408 |
$ |
42 (a) |
$ |
58,450 |
$ |
22,133 (m) |
$ |
80,583 |
||||||||||
| Operating expenses | 184,781 | (138,825) (1) | 45,956 | 23,669 (m) | 69,625 | $72,000 to $74,000 | ||||||||||||||
| Operating (loss) income | $ | (126,373 | ) | $ | 138,867 | $ | 12,494 | $ | (1,536) | $ | 10,958 | $0 to $5,000 | ||||||||
| Interest expense | $ | 6,669 | $ | — | $ | 6,669 | $ | 1,608 (m) | $ | 8,277 | ||||||||||
| Provision for income taxes | $ | 2,466 | $ | — | $ | 2,466 | $ | 876 (m) | $ | 3,342 | ||||||||||
| (Loss) income from continuing operations | $ | (126,419 | ) | $ | 132,434 (2) | $ | 6,015 | $ | (4,020) (m) | $ | 1,995 | |||||||||
| Basic and diluted earnings per share from continuing operations |
$ |
(2.56 |
) |
$ |
0.12 |
$ |
0.04 |
$(0.17) to $ (0.06) |
||||||||||||
|
(1) GAAP to Non-GAAP Core adjustments to operating expense are as follows: |
||||
| GAAP operating expenses | $ | 184,781 | ||
| Stock-based compensation (a) | (6,154 | ) | ||
| Amortization of intangible assets (c) | (3,629 | ) | ||
| Asset impairments (d) | (120,617 | ) | ||
| Special charges (e) | (8,425 | ) | ||
| Other | — | |||
| Non-GAAP Core operating expenses | $ | 45,956 | ||
|
(2) GAAP to Non-GAAP Core adjustments to net loss from continuing operations are as follows: |
||||
| GAAP net loss from continuing operations | $ | (126,419 | ) | |
| Gross margin adjustments (a) | 42 | |||
| Operating expense adjustments (a-e) | 138,825 | |||
| (Gain) loss on Mindspeed warrant (g) | (1,881 | ) | ||
| Gains on sales of equity securities (h) | (146 | ) | ||
| (Gains) losses of equity method investments (i) | (53 | ) | ||
| Other (j) | (4,353 | ) | ||
| Non-GAAP Core net income (loss) from continuing operations | $ | 6,015 | ||
|
See “ GAAP to Non-GAAP Core Adjustments ” below |
||||
|
CONEXANT SYSTEMS, INC. GAAP Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) |
||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| June 27, | March 28, | June 29, | June 27, | June 29, | ||||||||||||||||
| 2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||
| Net revenues | $ | 115,594 | $ | 118,518 | $ | 134,252 | $ | 380,045 | $ | 434,643 | ||||||||||
| Cost of goods sold | 57,186 | 56,481 | 70,547 | 177,479 | 222,628 | |||||||||||||||
| Gross margin | 58,408 | 62,037 | 63,705 | 202,566 | 212,015 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development | 27,410 | 30,650 | 42,502 | 95,883 | 131,151 | |||||||||||||||
|
Selling, general and adminis-
|
24,700 | 20,424 | 22,297 | 65,138 | 68,488 | |||||||||||||||
| Amortization of intangible assets | 3,629 | 2,859 | 4,613 | 11,059 | 16,685 | |||||||||||||||
| Asset impairments (Note 1) | 120,617 | — | — | 120,747 | 155,000 | |||||||||||||||
| Special charges | 8,425 | 2,594 | 1,141 | 15,238 | 8,510 | |||||||||||||||
| Total operating expenses | 184,781 | 56,527 | 70,553 | 308,065 | 379,834 | |||||||||||||||
| Operating (loss) income | (126,373 | ) | 5,510 | (6,848 | ) | (105,499 | ) | (167,819 | ) | |||||||||||
| Interest expense | 6,669 | 8,628 | 9,195 | 24,746 | 31,578 | |||||||||||||||
| Other (income) expense, net | (9,036 | ) | 4,148 | (3,656 | ) | 457 | (26,377 | ) | ||||||||||||
| Loss before income taxes and gain (loss) of equity method investments |
(124,006 |
) |
(7,266 |
) |
(12,387 |
) |
|
(130,702 |
) |
(173,020 |
) |
|||||||||
| Provision for income taxes | 2,466 | 717 | 530 | 4,045 | 1,748 | |||||||||||||||
|
Loss from continuing operations before gain (loss) of equity method investments |
(126,472 |
) |
(7,983 |
) |
(12,917 |
) |
|
(134,747 |
) |
(174,768 |
) |
|||||||||
| Gain (loss) of equity method investments (Note 2) | 53 | (214 | ) | 179 | 3,612 | 44,194 | ||||||||||||||
| Loss from continuing operations | (126,419 | ) | (8,197 | ) | (12,738 | ) | (131,135 | ) | (130,574 | ) | ||||||||||
| Loss from discontinued operations (net of tax) (Notes 3) | (23,452 | ) | (133,807 | ) | (22,489 | ) | (169,958 | ) | (37,123 | ) | ||||||||||
| Net loss | $ | (149,871 | ) | $ | (142,004 | ) | $ | (35,227 | ) | $ | (301,093 | ) | $ | (167,697 | ) | |||||
| Basic and diluted net loss per share from continuing operations (Note 4) |
$ |
(2.56 |
) |
$ |
(0.17 |
) |
$ |
(0.26 |
) |
$ |
(2.66 |
) |
$ |
(2.67 |
) |
|||||
| Basic and diluted net loss per share from discontinued operations (Note 4) |
$ |
(0.47 |
) |
$ |
(2.71 |
) |
$ |
(0.46 |
) |
$ |
(3.45 |
) |
$ |
(0.76 |
) |
|||||
| Basic and diluted net loss per share (Note 4) |
$ |
(3.03 |
) |
$ |
(2.88 |
) |
$ |
(0.72 |
) |
$ |
(6.11 |
) |
$ |
(3.43 |
) |
|||||
| Shares used in basic and diluted per-share computations (Note 4) |
49,450 |
49,312 |
49,056 |
49,333 |
48,861 |
|||||||||||||||
|
Note 1 – Asset impairments for the three and nine months ended June 27, 2008 includes non-cash impairment charges related to our Broadband Access (BBA) product lines related to goodwill of $108.6 million, intangible assets of $1.9 million, property, plant and equipment of $6.5 million and technical license tool impairments of $3.4 million. Asset impairments for the nine months ended June 29, 2007 also includes non-cash impairment charges related to our Embedded Wireless Networking business related to goodwill and intangible assets of $135.0 million and $20.0 million, respectively. |
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|
Note 2 – Gain (loss) of equity method investments for the nine months ended June 29, 2007 includes a gain on the sale of our investment in Jazz Semiconductor, Inc. of $43.5 million. |
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|
Note 3 – On April 29, 2008, the Company announced it had signed a definitive agreement to sell its Broadband Media Processing (BMP) product lines to NXP Semiconductors. As a result of this transaction, which is expected to close in August 2008, the results of the BMP business have been reported as discontinued operations and its assets and liabilities have been classified as held for sale. The results of discontinued operations include tax expense of $0.9 million, $0.3 million, $0.2 million, $1.4 million and $0.7 million for the three months ended June 27 and March 28, 2008 and June 29, 2007, and the nine months ended June 27, 2008 and June 29, 2007, respectively. |
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|
Note 4 – On June 27, 2008, the Company affected a one-for-ten reverse stock split of its common stock. All share and per share data in these condensed consolidated financial statements have been adjusted to give effect to the reverse split. |
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|
CONEXANT SYSTEMS, INC. Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures (unaudited, in thousands, except per share amounts) |
||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 27, | June 29, | June 27, | June 29, | |||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| GAAP net revenues | $ | 115,594 | $ | 134,252 | $ | 380,045 | $ | 434,643 | ||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | — | |||||||||||
| Non-GAAP Core net revenue less impact of royalty buyout |
$ |
115,594 |
$ |
134,252 |
$ |
365,345 |
$ |
434,643 |
||||||||
| GAAP cost of goods sold | $ | 57,186 | $ | 70,547 | $ | 177,479 | $ | 222,628 | ||||||||
| Stock-based compensation (a) | (42 | ) | (143 | ) | (237 | ) | (361 | ) | ||||||||
| Other (f) | — | — | 797 | — | ||||||||||||
| Non-GAAP Core cost of goods sold less impact of royalty buyout |
$ |
57,144 |
$ |
70,404 |
$ |
178,039 |
$ |
222,267 |
||||||||
| GAAP gross margin | $ | 58,408 | $ | 63,705 | $ | 202,566 | $ | 212,015 | ||||||||
| Stock-based compensation (a) | 42 | 143 | 237 | 361 | ||||||||||||
| Other (f) | — | — | (797 | ) | — | |||||||||||
| Non-GAAP Core gross margin | 58,450 | 63,848 | 202,006 | 212,376 | ||||||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | — | |||||||||||
| Non-GAAP Core gross margin less impact of royalty buyout |
$ |
58,450 |
$ |
63,848 |
$ |
187,306 |
$ |
212,376 |
||||||||
| GAAP operating expenses | $ | 184,781 | $ | 70,553 | $ | 308,065 | $ | 379,834 | ||||||||
| Stock-based compensation (a) | (6,154 | ) | (4,240 | ) | (11,846 | ) | (11,474 | ) | ||||||||
| Transitional salaries and benefits (b) | — | (934 | ) | — | (3,265 | ) | ||||||||||
| Amortization of intangible assets (c) | (3,629 | ) | (4,613 | ) | (11,060 | ) | (16,685 | ) | ||||||||
| Asset impairments (d) | (120,617 | ) | — | (120,747 | ) | (155,000 | ) | |||||||||
| Special charges (e) | (8,425 | ) | (1,141 | ) | (15,238 | ) | (8,510 | ) | ||||||||
| Other | — | — | — | (400 | ) | |||||||||||
| Non-GAAP Core operating expenses | $ | 45,956 | $ | 59,625 | $ | 149,174 | $ | 184,500 | ||||||||
| GAAP operating loss | $ | (126,373 | ) | $ | (6,848 | ) | $ | (105,499 | ) | $ | (167,819 | ) | ||||
| Gross margin adjustments (a, f) | 42 | 143 | (560 | ) | 361 | |||||||||||
| Operating expense adjustments (a-e) | 138,825 | 10,928 | 158,891 | 195,334 | ||||||||||||
| Non-GAAP Core operating income | $ | 12,494 | $ | 4,223 | $ | 52,832 | $ | 27,876 | ||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | — | |||||||||||
| Non-GAAP Core operating income less impact of royalty buyout |
$ |
12,494 |
$ |
4,223 |
$ |
38,132 |
$ |
27,876 |
||||||||
| GAAP net loss from continuing operations | $ | (126,419 | ) | $ | (12,738 | ) | $ | (131,135 | ) | $ | (130,574 | ) | ||||
| Gross margin adjustments (a, f) | 42 | 143 | (560 | ) | 361 | |||||||||||
| Operating expense adjustments (a-e) | 138,825 | 10,928 | 158,891 | 195,334 | ||||||||||||
| Unrealized (gains) losses on Mindspeed warrant (g) | (1,881 | ) | (944 | ) | 12,662 | (7,868 | ) | |||||||||
| Gains on sales of equity securities (h) | (146 | ) | (101 | ) | (875 | ) | (6,570 | ) | ||||||||
| (Gains) losses of equity method investments (i) | (53 | ) | (179 | ) | (3,612 | ) | (44,194 | ) | ||||||||
| Other (j) | (4,353 | ) | — | (2,998 | ) | — | ||||||||||
| Non-GAAP Core net income (loss) from continuing operations |
$ |
6,015 |
$ |
(2,891 |
) |
$ |
32,373 |
$ |
6,489 |
|||||||
| Basic and Diluted net (loss) income from continuing operations per share: | ||||||||||||||||
| GAAP (l) | $ | (2.56 | ) | $ | (0.26 | ) | $ | (2.66 | ) | $ | (2.67 | ) | ||||
| Non-GAAP (l) | $ | 0.12 | $ | (0.06 | ) | $ | 0.65 | $ | 0.13 | |||||||
|
See “ GAAP to Non-GAAP Core Adjustments ” below |
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|
CONEXANT SYSTEMS, INC. Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures (unaudited, in thousands, except per share amounts) |
||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
| June 27, | March 28, | December 28, | June 27, | |||||||||||||
| 2008 | 2008 | 2007 | 2008 | |||||||||||||
| GAAP net revenues | $ | 115,594 | $ | 118,518 | $ | 145,933 | $ | 380,045 | ||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | (14,700 | ) | ||||||||||
| Non-GAAP Core net revenue less impact of royalty buyout |
$ |
115,594 |
$ |
118,518 |
$ |
131,233 |
$ |
365,345 |
||||||||
| GAAP cost of goods sold | $ | 57,186 | $ | 56,481 | $ | 63,812 | $ | 177,479 | ||||||||
| Stock-based compensation (a) | (42 | ) | (81 | ) | (114 | ) | (237 | ) | ||||||||
| Other (f) | — | 797 | — | 797 | ||||||||||||
| Non-GAAP Core cost of goods sold | $ | 57,144 | $ | 57,197 | $ | 63,698 | $ | 178,039 | ||||||||
| GAAP gross margin | $ | 58,408 | $ | 62,037 | $ | 82,121 | $ | 202,566 | ||||||||
| Stock-based compensation (a) | 42 | 81 | 114 | 237 | ||||||||||||
| Other (f) | — | (797 | ) | — | (797 | ) | ||||||||||
| Non-GAAP Core gross margin | 58,450 | 61,321 | 82,235 | 202,006 | ||||||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | (14,700 | ) | ||||||||||
| Non-GAAP Core gross margin less impact of royalty buyout |
$ |
58,450 |
$ |
61,321 |
$ |
67,535 |
$ |
187,306 |
||||||||
| GAAP operating expenses | $ | 184,781 | $ | 56,527 | $ | 66,757 | $ | 308,065 | ||||||||
| Stock-based compensation (a) | (6,154 | ) | (3,122 | ) | (2,570 | ) | (11,846 | ) | ||||||||
| Transitional salaries and benefits (b) | — | — | — | — | ||||||||||||
| Amortization of intangible assets (c) | (3,629 | ) | (2,859 | ) | (4,571 | ) | (11,060 | ) | ||||||||
| Asset impairments (d) | (120,617 | ) | — | (130 | ) | (120,747 | ) | |||||||||
| Special charges (e) | (8,425 | ) | (2,594 | ) | (4,219 | ) | (15,238 | ) | ||||||||
| Other | — | — | — | — | ||||||||||||
| Non-GAAP Core operating expenses | $ | 45,956 | $ | 47,952 | $ | 55,267 | $ | 149,174 | ||||||||
| GAAP operating (loss) income | $ | (126,373 | ) | $ | 5,510 | $ | 15,364 | $ | (105,499 | ) | ||||||
| Gross margin adjustments (a, f) | 42 | (716 | ) | 114 | (560 | ) | ||||||||||
| Operating expense adjustments (a-e) | 138,825 | 8,575 | 11,490 | 158,891 | ||||||||||||
| Non-GAAP Core operating income | $ | 12,494 | $ | 13,369 | $ | 26,968 | $ | 52,832 | ||||||||
| Royalty buyout (k) | — | — | (14,700 | ) | (14,700 | ) | ||||||||||
| Non-GAAP Core operating income less impact of royalty buyout |
$ |
12,494 |
$ |
13,369 |
$ |
12,268 |
$ |
38,132 |
||||||||
| GAAP net (loss) income from continuing operations | $ | (126,419 | ) | $ | (8,197 | ) | $ | 3,481 | $ | (131,135 | ) | |||||
| Gross margin adjustments (a, f) | 42 | (716 | ) | 114 | (560 | ) | ||||||||||
| Operating expense adjustments (a-e) | 138,825 | 8,575 | 11,490 | 158,891 | ||||||||||||
| Unrealized (gains) losses on Mindspeed warrant (g) | (1,881 | ) | 6,179 | 8,364 | 12,662 | |||||||||||
| Gains on sales of equity securities (h) | (146 | ) | (729 | ) | — | (875 | ) | |||||||||
| (Gains) losses of equity method investments (i) | (53 | ) | 214 | (3,773 | ) | (3,612 | ) | |||||||||
| Other (j) | (4,353 | ) | 1,355 | — | (2,998 | ) | ||||||||||
| Non-GAAP Core net income from continuing operations |
$ |
6,015 |
$ |
6,681 |
$ |
19,676 |
$ |
32,373 |
||||||||
| Basic and diluted net income (loss) from continuing operations per share: | ||||||||||||||||
| GAAP (l) | $ | (2.56 | ) | $ | (0.17 | ) | $ | 0.07 | $ | (2.66 | ) | |||||
| Non-GAAP Core (l) | $ | 0.12 | $ | 0.14 | $ | 0.40 | $ | 0.65 | ||||||||
|
See “ GAAP to Non-GAAP Core Adjustments ” below |
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|
CONEXANT SYSTEMS, INC. Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures (unaudited, in thousands, except per share amounts) |
||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| September 28, | June 29, | March 30, | December 29, | September 28, | ||||||||||||||||
| 2007 | 2007 | 2007 | 2006 | 2007 | ||||||||||||||||
|
GAAP net revenues |
$ | 138,933 | $ | 134,252 | $ | 136,084 | $ | 164,307 | $ | 573,576 | ||||||||||
| GAAP cost of goods sold | $ | 72,836 | $ | 70,547 | $ | 70,941 | $ | 81,140 | $ | 295,464 | ||||||||||
| Stock-based compensation (a) | (112 | ) | (143 | ) | (115 | ) | (103 | ) | (473 | ) | ||||||||||
| Other (f) | (1,211 | ) | — | — | — | (1,211 | ) | |||||||||||||
| Non-GAAP Core cost of goods sold | $ | 71,513 | $ | 70,404 | $ | 70,826 | $ | 81,037 | $ | 293,780 | ||||||||||
| GAAP gross margin | $ | 66,097 | $ | 63,705 | $ | 65,143 | $ | 83,167 | $ | 278,112 | ||||||||||
| Stock-based compensation (a) | 112 | 143 | 115 | 103 | 473 | |||||||||||||||
| Other (f) | 1,211 | — | — | — | 1,211 | |||||||||||||||
| Non-GAAP Core gross margin | $ | 67,420 | $ | 63,848 | $ | 65,258 | $ | 83,270 | $ | 279,796 | ||||||||||
| GAAP operating expenses | $ | 162,884 | $ | 70,553 | $ | 231,196 | $ | 78,085 | $ | 542,718 | ||||||||||
| Stock-based compensation (a) | (3,856 | ) | (4,240 | ) | (3,884 | ) | (3,522 | ) | (15,502 | ) | ||||||||||
| Transitional salaries and benefits (b) | (620 | ) | (934 | ) | (1,591 | ) | (740 | ) | (3,885 | ) | ||||||||||
| Amortization of intangible assets (c) | (4,574 | ) | (4,613 | ) | (6,044 | ) | (6,028 | ) | (21,259 | ) | ||||||||||
| Asset impairments (d) | (67,698 | ) | — | (155,000 | ) | — | (222,698 | ) | ||||||||||||
| Special charges (e) | (25,302 | ) | (1,141 | ) | (4,532 | ) | (2,837 | ) | (33,812 | ) | ||||||||||
| Other | — | — | — | (400 | ) | (400 | ) | |||||||||||||
| Non-GAAP Core operating expenses | $ | 60,834 | $ | 59,625 | $ | 60,145 | $ | 64,558 | $ | 245,162 | ||||||||||
| GAAP operating (loss) income | $ | (96,787 | ) | $ | (6,848 | ) | $ | (166,053 | ) | $ | 5,082 | $ | (264,606 | ) | ||||||
| Gross margin adjustments (a, f, k) | 1,323 | 143 | 115 | 103 | 1,684 | |||||||||||||||
| Operating expense adjustments (a-e) | 102,050 | 10,928 | 171,051 | 13,527 | 297,556 | |||||||||||||||
| Non-GAAP Core operating income | $ | 6,586 | $ | 4,223 | $ | 5,113 | $ | 18,712 | $ | 34,634 | ||||||||||
| GAAP net (loss) income from continuing operations | $ | (90,616 | ) | $ | (12,738 | ) | $ | (124,342 | ) | $ | 6,506 | $ | (221,190 | ) | ||||||
| Gross margin adjustments (a, f, k) | 1,323 | 143 | 115 | 103 | 1,684 | |||||||||||||||
| Operating expense adjustments (a-e) | 102,050 | 10,928 | 171,051 | 13,527 | 297,556 | |||||||||||||||
| Unrealized (gains) losses on Mindspeed warrant (g) | 8,820 | (944 | ) | (3,882 | ) | (3,042 | ) | 952 | ||||||||||||
| Gains on sales of equity securities (h) | (10,446 | ) | (101 | ) | (1,337 | ) | (5,132 | ) | (17,016 | ) | ||||||||||
| (Gains) losses of equity method investments (i) | (6,988 | ) | (179 | ) | (44,020 | ) | 5 | (51,182 | ) | |||||||||||
| Other | (5,324 | ) | — | — | — | (5,324 | ) | |||||||||||||
| Non-GAAP Core net (loss) income from continuing operations | $ | (1,181 | ) | $ | (2,891 | ) | $ | (2,415 | ) | $ | 11,967 | $ | 5,480 | |||||||
| Basic and diluted net (loss) income from continuing operations per share: | ||||||||||||||||||||
| GAAP (l) | $ | (1.84 | ) | $ | (0.26 | ) | $ | (2.54 | ) | $ | 0.13 | $ | (4.52 | ) | ||||||
| Non-GAAP Core (l) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | 0.25 | $ | 0.11 | |||||||
|
See “ GAAP to Non-GAAP Core Adjustments ” below |
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