We have presented non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per share, on a basis consistent with our historical presentation to assist investors in understanding our core results of operations on an on-going basis. These non-GAAP financial measures also enhance comparisons of our core results of operations with historical periods. We are providing these non-GAAP financial measures to investors to enable them to perform additional financial analysis and because it is consistent with the financial models and estimates published by analysts who follow our company. Management believes that these are important measures in the evaluation of our results of operations. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by us may be different than non-GAAP financial measures presented by other companies.
GAAP Guidance:
We do not present GAAP guidance due to our inability to project (i) future market prices of the common stock of a third party underlying a derivative financial instrument, (ii) realized gains or losses from the sale of equity securities in third parties, and (iii) the financial results of investments accounted for using the equity method of accounting.
CONEXANT SYSTEMS, INC. Condensed Consolidated Balance Sheets (unaudited, in thousands) |
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June 27, | September 28, | ||||||
2008 | 2007 | ||||||
ASSETS |
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Current assets: | |||||||
Cash and cash equivalents | $ | 134,626 | $ | 234,147 | |||
Restricted cash | 37,800 | 8,800 | |||||
Receivables | 78,499 | 80,856 | |||||
Inventories | 36,713 | 42,007 | |||||
Other current assets | 32,560 | 18,131 | |||||
Current assets held for sale | 107,833 | 250,451 | |||||
Total current assets | 428,031 | 634,392 | |||||
Property, plant and equipment, net | 24,749 | 46,676 | |||||
Goodwill | 105,379 | 214,635 | |||||
Intangible assets, net | 11,625 | 24,597 | |||||
Other assets | 54,879 | 65,669 | |||||
Total assets | $ | 624,663 | $ | 985,969 | |||
LIABILITIES AND SHAREHOLDERS ’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | — | $ | 58,000 | |||
Short-term debt | 77,177 | 80,000 | |||||
Accounts payable | 61,836 | 80,571 | |||||
Accrued compensation and benefits | 18,908 | 23,191 | |||||
Other current liabilities | 59,890 | 70,345 | |||||
Current liabilities to be assumed | 4,234 | 3,925 | |||||
Total current liabilities | 222,045 | 316,032 | |||||
Long-term debt | 471,400 | 467,000 | |||||
Other liabilities | 63,750 | 56,422 | |||||
Total liabilities | 757,195 | 839,454 | |||||
Shareholders ’ (deficit) equity | (132,532 | ) | 146,515 | ||||
Total liabilities and shareholders ’ (deficit) equity | $ | 624,663 | $ | 985,969 |
CONEXANT SYSTEMS, INC. Selected Other Data (unaudited, in thousands) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
June 27, | March 28, | June 29, | June 27, | June 29, | |||||||||||
2008 | 2008 | 2007 | 2008 | 2007 | |||||||||||
Revenues By Region: | |||||||||||||||
Americas | $ | 8,995 | $ | 7,942 | $ | 11,446 | $ | 26,236 | $ | 35,485 | |||||
Asia-Pacific | 99,690 | 105,183 | 114,949 | 334,018 | 374,722 | ||||||||||
Europe, Middle East and Africa | 6,909 | 5,393 | 7,857 | 19,791 | 24,436 | ||||||||||
$ | 115,594 | $ | 118,518 | $ | 134,252 | $ | 380,045 | $ | 434,643 | ||||||
Cash Flow Data: | |||||||||||||||
Depreciation of PP&E | $ | 5,245 | $ | 5,825 | $ | 6,452 | $ | 16,779 | $ | 18,441 | |||||
Capital expenditures | $ | 551 | $ | 2,075 | $ | 8,194 | $ | 3,655 | $ | 23,133 |