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PMC Reports Third Quarter 2014 Results - Net Revenue Up 7%, Earnings Gain
Tuesday, October 28, 2014Company Profile | Follow Company
Vancouver, BC, October 28, 2014--(T-Net)--PMC-Sierra, Inc. (PMC®) (PMCS), a semiconductor and software solutions provider transforming networks that connect, move and store big data, today reported results for the third quarter ended September 27, 2014.
Net revenues in the third quarter of 2014 totaled $135.5 million, an increase of 7 percent from $126.8 million in the second quarter of 2014 and an increase of 6 percent, compared to $128.4 million in the third quarter of 2013.
GAAP net income in the third quarter of 2014 totaled $5.5 million or $0.03 per diluted share, compared to a GAAP net loss in the second quarter of 2014 of $3.5 million or a $0.02 loss per share.
Non-GAAP net income in the third quarter of 2014 totaled $22.5 million or $0.11 per diluted share, compared to non-GAAP net income of $18.3 million or $0.09 per diluted share in the second quarter of 2014.
“Our Storage business performed exceedingly well this past quarter with double-digit growth across all of its product lines,” said PMC president and chief executive officer, Greg Lang. “PMC remains well-positioned for continued growth into FY2015, as we expect to see increasing demand for our 12Gb/s SAS I/O controllers and expanders, advanced DIGI OTN processors, Flashtec™ NVMe controllers and our new RF Remote Radio Head products.”
Net income on a non-GAAP basis in the third quarter of 2014 excludes the following items: (i) $9.9 million amortization of purchased intangible assets; (ii) $5.2 million stock-based compensation expense, (iii) $1.0 million of acquisition-related costs and other adjustments as described in the accompanying GAAP to non-GAAP reconciliation table.
For a full reconciliation of each non-GAAP item used herein to the most directly comparable GAAP financial measure, please refer to the schedule included with this release. The Company believes the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses the non-GAAP measures internally to evaluate its in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company's core operating results. In addition, the measures are used to plan for the Company's future periods. However, non-GAAP measures are neither stated in accordance with, nor are they a substitute for, GAAP measures.
THIRD QUARTER 2014 HIGHLIGHTS
The Company made the following third quarter announcements:
Safe Harbor Statement
This release contains forward-looking statements that involve risks and uncertainties. The Company's SEC filings, including the Company's most recent reports on Form 10-K and Form 10-Q, describe the risks associated with the Company's business, including PMC's limited revenue visibility due to variable customer demands, market segment growth or decline, orders with short delivery lead times, customer concentration, changes in inventory, and other items such as tax rates, foreign exchange rates and volatility in global financial markets.
About PMC
PMC (PMCS) is the semiconductor and software solutions innovator transforming networks that connect, move and store big data. Building on a track record of technology leadership, the Company is driving innovation across storage, optical and mobile networks. PMC's highly integrated solutions increase performance and enable next-generation services to accelerate the network transformation. For more information, visit www.pmcs.com.
© Copyright PMC-Sierra, Inc. 2014. All rights reserved. PMC and PMC-SIERRA are registered trademarks of PMC-Sierra, Inc. in the United States and other countries, PMCS is a trademark of PMC-Sierra, Inc. PMC disclaims any ownership rights in other product and company names mentioned herein. PMC is the corporate brand of PMC-Sierra, Inc.
PMC-Sierra, Inc. | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 27, | June 28, | September 28, | September 27, | September 28, | |||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net revenues | $ | 135,462 | $ | 126,822 | $ | 128,411 | $ | 388,752 | $ | 381,156 | |||||||||||||||
Cost of revenues | 40,306 | 36,824 | 36,840 | 114,694 | 111,864 | ||||||||||||||||||||
Gross profit | 95,156 | 89,998 | 91,571 | 274,058 | 269,292 | ||||||||||||||||||||
Research and development | 48,441 | 49,388 | 50,733 | 147,977 | 157,038 | ||||||||||||||||||||
Selling, general and administrative | 29,265 | 28,991 | 26,383 | 87,596 | 85,002 | ||||||||||||||||||||
Amortization of purchased intangible assets | 9,948 | 9,948 | 13,138 | 32,225 | 34,698 | ||||||||||||||||||||
Income (loss) from operations | 7,502 | 1,671 | 1,317 | 6,260 | (7,446 | ) | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||
Gain on investment securities and other investments | 12 | 46 | 1,762 | 87 | 1,776 | ||||||||||||||||||||
Amortization of debt issue costs | (51 | ) | (51 | ) | (30 | ) | (153 | ) | (30 | ) | |||||||||||||||
Foreign exchange gain (loss) | 899 | (789 | ) | (1,898 | ) | 642 | 1,680 | ||||||||||||||||||
Interest income, net | 198 | 114 | 230 | 321 | 824 | ||||||||||||||||||||
Income (loss) before provision for income taxes | 8,560 | 991 | 1,381 | 7,157 | (3,196 | ) | |||||||||||||||||||
Provision for income taxes | (3,087 | ) | (4,471 | ) | (4,613 | ) | (9,405 | ) | (13,379 | ) | |||||||||||||||
Net income (loss) | $ | 5,473 | $ | (3,480 | ) | $ | (3,232 | ) | $ | (2,248 | ) | $ | (16,575 | ) | |||||||||||
Net income (loss) per common share - basic | $ | 0.03 | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | |||||||||||
Net income (loss) per common share - diluted | $ | 0.03 | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | |||||||||||
Shares used in per share calculation - basic | 197,613 | 196,114 | 205,377 | 196,305 | 204,638 | ||||||||||||||||||||
Shares used in per share calculation - diluted | 200,744 | 196,114 | 205,377 | 196,305 | 204,638 | ||||||||||||||||||||
As a supplement to the Company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company provides additional non-GAAP measures for cost of revenues, gross profit, gross profit percentage, research and development expense, selling, general and administrative expense, amortization of purchased intangible assets, other income (expense), (provision for) recovery of income taxes, operating expenses, operating income (loss), operating margin percentage, net income (loss), and basic and diluted net income (loss) per share.
A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses these measures internally to evaluate the Company's in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company's core operating results. In addition, the measures are used for planning and forecasting of the Company's future periods. However, non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
PMC-Sierra, Inc. |
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Adjustments to GAAP Cost of Revenues, Gross Profit, Gross Profit Percentage, Research and Development Expense, Selling, General and Administrative Expense, Amortization of Purchased Intangible Assets, Other (Expense) Income, (Provision for) Recovery of Income Taxes, Operating Expenses, Operating Income (Loss), Operating Margin Percentage, Net Income (Loss), and Basic and Diluted Net Income (Loss) Per Share |
|||||||||||||||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 27, | June 28, | September 28, | September 27, | September 28, | |||||||||||||||||||||
2014 (1) |
2014 (2) |
2013 (3) |
2014 (4) |
2013 (5) |
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GAAP cost of revenues | $ | 40,306 | $ | 36,824 | $ | 36,840 | $ | 114,694 | $ | 111,864 | |||||||||||||||
Stock-based compensation | (226 | ) | (214 | ) | (190 | ) | (681 | ) | (643 | ) | |||||||||||||||
Acquisition-related costs | - | - | (777 | ) | - | (795 | ) | ||||||||||||||||||
Termination recoveries | - | - | - | 9 | - | ||||||||||||||||||||
Reversal of accruals | - | - | 2,300 | - | 2,300 | ||||||||||||||||||||
Non-GAAP cost of revenues | $ | 40,080 | $ | 36,610 | $ | 38,173 | $ | 114,022 | $ | 112,726 | |||||||||||||||
GAAP gross profit | $ | 95,156 | $ | 89,998 | $ | 91,571 | $ | 274,058 | $ | 269,292 | |||||||||||||||
Stock-based compensation | 226 | 214 | 190 | 681 | 643 | ||||||||||||||||||||
Acquisition-related costs | - | - | 777 | - | 795 | ||||||||||||||||||||
Termination recoveries | - | - | - | (9 | ) | - | |||||||||||||||||||
Reversal of accruals | - | - | (2,300 | ) | - | (2,300 | ) | ||||||||||||||||||
Non-GAAP gross profit | $ | 95,382 | $ | 90,212 | $ | 90,238 | $ | 274,730 | $ | 268,430 | |||||||||||||||
Non-GAAP gross profit % | 70 | % | 71 | % | 70 | % | 71 | % | 70 | % | |||||||||||||||
GAAP research and development expense | $ | 48,441 | $ | 49,388 | $ | 50,733 | $ | 147,977 | $ | 157,038 | |||||||||||||||
Stock-based compensation | (1,990 | ) | (1,903 | ) | (2,541 | ) | (6,540 | ) | (8,241 | ) | |||||||||||||||
Acquisition-related costs | (356 | ) | (794 | ) | (1,200 | ) | (1,950 | ) | (1,741 | ) | |||||||||||||||
Termination recoveries (costs) | 28 | (342 | ) | (178 | ) | (256 | ) | (1,448 | ) | ||||||||||||||||
Reversal of accruals | - | - | - | - | 2,890 | ||||||||||||||||||||
Non-GAAP research and development expense | $ | 46,123 | $ | 46,349 | $ | 46,814 | $ | 139,231 | $ | 148,498 | |||||||||||||||
GAAP selling, general and administrative expense | $ | 29,265 | $ | 28,991 | $ | 26,383 | $ | 87,596 | $ | 85,002 | |||||||||||||||
Stock-based compensation | (3,012 | ) | (2,798 | ) | (3,143 | ) | (9,113 | ) | (10,577 | ) | |||||||||||||||
Acquisition-related costs | (669 | ) | (3 | ) | (5 | ) | (733 | ) | (1,083 | ) | |||||||||||||||
Lease exit costs | (31 | ) | (4 | ) | - | (177 | ) | - | |||||||||||||||||
Termination recoveries (costs) | 254 | (1,295 | ) | (41 | ) | (1,044 | ) | (502 | ) | ||||||||||||||||
Asset impairment | - | - | - | (477 | ) | (1,575 | ) | ||||||||||||||||||
Other expenses | - | - | - | (58 | ) | - | |||||||||||||||||||
Non-GAAP selling, general and administrative expense | $ | 25,807 | $ | 24,891 | $ | 23,194 | $ | 75,994 | $ | 71,265 | |||||||||||||||
GAAP amortization of purchased intangible assets | $ | 9,948 | $ | 9,948 | $ | 13,138 | $ | 32,225 | $ | 34,698 | |||||||||||||||
Amortization of purchased intangible assets | (9,948 | ) | (9,948 | ) | (13,138 | ) | (32,225 | ) | (34,698 | ) | |||||||||||||||
Non-GAAP amortization of purchased intangible assets | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
GAAP other (expense) income | $ | 1,058 | $ | (680 | ) | $ | 64 | $ | 897 | $ | 4,250 | ||||||||||||||
Foreign exchange (gain) loss on foreign tax liabilities | (1,081 | ) | 976 | 1,390 | (984 | ) | (2,133 | ) | |||||||||||||||||
Gain on disposal of investment | - | - | - | - | (1,762 | ) | |||||||||||||||||||
Non-GAAP other income (expense) | $ | (23 | ) | $ | 296 | $ | 1,454 | $ | (87 | ) | $ | 355 | |||||||||||||
GAAP provision for income taxes | $ | 3,087 | $ | 4,471 | $ | 4,613 | $ | 9,405 | $ | 13,379 | |||||||||||||||
Provision for income tax matters | (2,178 | ) | (3,550 | ) | (4,578 | ) | (6,839 | ) | (13,636 | ) | |||||||||||||||
Non-GAAP provision for (recovery of) income taxes | $ | 909 | $ | 921 | $ | 35 | $ | 2,566 | $ | (257 | ) | ||||||||||||||
GAAP operating expenses | $ | 87,654 | $ | 88,327 | $ | 90,254 | $ | 267,798 | $ | 276,738 | |||||||||||||||
Stock-based compensation | (5,002 | ) | (4,701 | ) | (5,684 | ) | (15,653 | ) | (18,818 | ) | |||||||||||||||
Acquisition-related costs | (1,025 | ) | (797 | ) | (1,205 | ) | (2,683 | ) | (2,824 | ) | |||||||||||||||
Assets impairment | - | - | - | (477 | ) | (1,575 | ) | ||||||||||||||||||
Lease exit costs | (31 | ) | (4 | ) | - | (177 | ) | - | |||||||||||||||||
Termination recoveries (costs) | 282 | (1,637 | ) | (219 | ) | (1,300 | ) | (1,950 | ) | ||||||||||||||||
Amortization of purchased intangible assets | (9,948 | ) | (9,948 | ) | (13,138 | ) | (32,225 | ) | (34,698 | ) | |||||||||||||||
Reversal of accruals | - | - | - | - | 2,890 | ||||||||||||||||||||
Other expenses | - | - | - | (58 | ) | - | |||||||||||||||||||
Non-GAAP operating expenses | $ | 71,930 | $ | 71,240 | $ | 70,008 | $ | 215,225 | $ | 219,763 | |||||||||||||||
September 27, | June 28, | September 28, | September 27, | September 28, | |||||||||||||||||||||
2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
GAAP operating income (loss) | $ | 7,502 | $ | 1,671 | $ | 1,317 | $ | 6,260 | $ | (7,446 | ) | ||||||||||||||
Stock-based compensation | 5,228 | 4,915 | 5,874 | 16,334 | 19,461 | ||||||||||||||||||||
Acquisition-related costs | 1,025 | 797 | 1,982 | 2,683 | 3,619 | ||||||||||||||||||||
Assets impairment | - | - | - | 477 | 1,575 | ||||||||||||||||||||
Lease exit costs | 31 | 4 | - | 177 | - | ||||||||||||||||||||
Termination (recoveries) costs | (282 | ) | 1,637 | 219 | 1,291 | 1,950 | |||||||||||||||||||
Amortization of purchased intangible assets | 9,948 | 9,948 | 13,138 | 32,225 | 34,698 | ||||||||||||||||||||
Reversal of accruals | - | - | (2,300 | ) | - | (5,190 | ) | ||||||||||||||||||
Other expenses | - | - | - | 58 | - | ||||||||||||||||||||
Non-GAAP operating income | $ | 23,452 | $ | 18,972 | $ | 20,230 | $ | 59,505 | $ | 48,667 | |||||||||||||||
Non-GAAP operating margin | 17 | % | 15 | % | 16 | % | 15 | % | 13 | % | |||||||||||||||
GAAP net income (loss) | $ | 5,473 | $ | (3,480 | ) | $ | (3,232 | ) | $ | (2,248 | ) | $ | (16,575 | ) | |||||||||||
Stock-based compensation | 5,228 | 4,915 | 5,874 | 16,334 | 19,461 | ||||||||||||||||||||
Acquisition-related costs | 1,025 | 797 | 1,982 | 2,683 | 3,619 | ||||||||||||||||||||
Termination costs (recoveries) | (282 | ) | 1,637 | 219 | 1,291 | 1,950 | |||||||||||||||||||
Reversal of accruals | - | - | (2,300 | ) | - | (5,190 | ) | ||||||||||||||||||
Assets impairment | - | - | - | 477 | 1,575 | ||||||||||||||||||||
Lease exit costs | 31 | 4 | - | 177 | - | ||||||||||||||||||||
Amortization of purchased intangible assets | 9,948 | 9,948 | 13,138 | 32,225 | 34,698 | ||||||||||||||||||||
Other expenses | - | - | - | 58 | - | ||||||||||||||||||||
Foreign exchange (gain) loss on foreign tax liabilities | (1,081 | ) | 976 | 1,390 | (984 | ) | (2,133 | ) | |||||||||||||||||
Gain on disposal of investments | - | - | (1,762 | ) | - | (1,762 | ) | ||||||||||||||||||
Provision for income tax matters | 2,178 | 3,550 | 4,578 | 6,839 | 13,636 | ||||||||||||||||||||
Non-GAAP net income | $ | 22,520 | $ | 18,347 | $ | 19,887 | $ | 56,852 | $ | 49,279 | |||||||||||||||
Non-GAAP net income per share - basic | $ | 0.11 | $ | 0.09 | $ | 0.10 | $ | 0.29 | $ | 0.24 | |||||||||||||||
Non-GAAP net income per share - diluted | $ | 0.11 | $ | 0.09 | $ | 0.10 | $ | 0.28 | $ | 0.24 | |||||||||||||||
Shares used to calculate non-GAAP net income per share - basic | 197,613 | 196,114 | 205,377 | 196,305 | 204,638 | ||||||||||||||||||||
Shares used to calculate non-GAAP net income per share - diluted | 200,744 | 199,594 | 207,475 | 199,548 | 206,772 | ||||||||||||||||||||
(1) $5.2 million stock-based compensation expense; $1 million acquisition-related costs; $0.3 million recovery of termination costs; $9.9 million amortization of purchased intangible assets; $1.1 million foreign exchange gain on foreign tax liabilities; $0.1 million lease exit costs; $0.1 million other expenses; and $2.2 million provision for income taxes which includes $0.9 million income tax provision related to unrecognized tax benefits, $1.1 million income tax provision related to prepaid tax amortization, and $0.2 million income tax provision from adjustments related to prior periods. |
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(2) $4.9 million stock-based compensation expense; $0.8 million acquisition-related costs; $1.6 million of net termination costs; $9.9 million amortization of purchased intangible assets; $1 million foreign exchange loss on foreign tax liabilities; $0.1 million lease exit costs; and $3.6 million provision for income taxes which includes $0.8 million income tax provision related to unrecognized tax benefits, $1.5 million income tax provision related to prepaid tax amortization, $1.5 million income tax provision related to tax deductible goodwill and other items, $0.4 million deferred income tax benefit from adjustments related to prior periods, and $0.2 million income tax provision related to tax deductible items above. |
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(3) $5.9 million stock-based compensation expense; $2 million acquisition-related costs; $0.2 million termination costs; $13.1 million amortization of purchased intangible assets; $1.4 million foreign exchange loss on foreign tax liabilities; $1.8 million gain from disposal of investments; $2.3 million reversal of accruals; and $4.6 million provision for income taxes which includes $2.9 million deferred tax provision related to non-deductible intangible asset amortization, $1.1 million income tax provision related to unrecognized tax benefits, $0.4 million tax recovery related to foreign exchange translation of a foreign subsidiary, and $1 million income tax provision related to tax deductible items above. |
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(4) $16.3 million stock-based compensation expense; $2.7 million acquisition-related costs; $1.3 million net termination costs; $32.2 million amortization of purchased intangible assets; $1 million foreign exchange gain on foreign tax liabilities; $0.5 million asset impairment; $0.2 million lease exit costs; $0.1 million other expenses; and $6.8 million provision for income taxes which includes $2.4 million income tax provision related to unrecognized tax benefits, $3 million income tax provision related to prepaid tax amortization, and $1.4 million income tax provision related to tax deductible goodwill and other items. |
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(5) $19.5 million stock-based compensation expense; $3.6 million acquisition-related costs; $2 million termination costs; $1.6 million asset impairment; $5.2 million reversal of accruals; $34.7 million amortization of purchased intangible assets; $2.1 million foreign exchange gain on foreign tax liabilities; $1.8 million gain on disposal; and $13.6 million provision for income taxes which includes$1.7 million arrears interest relating to unrecognized tax benefits, $8.6 million deferred tax provision related to non-deductible intangible asset amortization, $0.5 million income tax provision relating to foreign exchange translation of a foreign subsidiary, $2.7 million tax provision for adjustments relating to prior period, and $0.1 million deferred tax provision related to tax deductible items above. |
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PMC-Sierra, Inc. | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
September 27, | December 28, | |||||||||||
2014 | 2013 | |||||||||||
ASSETS: | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 89,940 | $ | 100,038 | ||||||||
Short-term investments | 35,419 | 10,894 | ||||||||||
Cash, cash equivalents and short-term investments | 125,359 | 110,932 | ||||||||||
Accounts receivable, net | 57,013 | 56,112 | ||||||||||
Inventories, net | 34,588 | 31,074 | ||||||||||
Prepaid expenses and other current assets | 16,304 | 19,855 | ||||||||||
Income tax receivable | 3,673 | 2,640 | ||||||||||
Prepaid tax expense | 2,749 | 5,695 | ||||||||||
Deferred tax assets (1) |
3,328 | 43,131 | ||||||||||
Total current assets | 243,014 | 269,439 | ||||||||||
Investment securities | 103,101 | 103,391 | ||||||||||
Investments and other assets | 8,190 | 10,750 | ||||||||||
Prepaid tax expense | 93 | 93 | ||||||||||
Property and equipment, net | 38,730 | 39,149 | ||||||||||
Goodwill and other intangible assets, net | 439,120 | 425,823 | ||||||||||
Deferred tax assets (1) |
1,557 | 1,306 | ||||||||||
$ | 833,805 | $ | 849,951 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 19,092 | $ | 23,173 | ||||||||
Accrued liabilities | 72,360 | 64,257 | ||||||||||
Credit facility | - | 30,000 | ||||||||||
Income taxes payable | 2,983 | 632 | ||||||||||
Liability for unrecognized tax benefit (1) | 21,394 | 54,127 | ||||||||||
Deferred income taxes | 9 | 71 | ||||||||||
Deferred income | 5,501 | 7,481 | ||||||||||
Total current liabilities | 121,339 | 179,741 | ||||||||||
Long-term obligations | 35,982 | 11,108 | ||||||||||
Deferred income taxes | 49,183 | 43,143 | ||||||||||
Liability for unrecognized tax benefit (1) |
18,621 | 27,947 | ||||||||||
PMC special shares convertible into 1,016 (2013 - 1,019) shares of common stock |
1,180 | 1,188 | ||||||||||
Stockholders' equity: | ||||||||||||
Common stock and additional paid in capital | 1,577,573 | 1,550,385 | ||||||||||
Accumulated other comprehensive loss | (780 | ) | (526 | ) | ||||||||
Accumulated deficit | (969,293 | ) | (963,035 | ) | ||||||||
Total stockholders' equity | 607,500 | 586,824 | ||||||||||
$ | 833,805 | $ | 849,951 | |||||||||
(1) Effective from the beginning of the first quarter of 2014, the Company adopted Financial Accounting Standards Board's Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists.” Approximately $44 million of deferred tax assets of a foreign subsidiary were derecognized along with the related liability for unrecognized tax benefits as a result of this presentation adoption, with no impact to the Condensed Consolidated Statements of Operations. |
PMC-Sierra, Inc. | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Nine Months Ended | ||||||||||||
September 27, | September 28, | |||||||||||
2014 | 2013 | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (2,248 | ) | $ | (16,575 | ) | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 48,739 | 51,731 | ||||||||||
Stock-based compensation | 16,334 | 19,461 | ||||||||||
Unrealized foreign exchange gain, net | (2,372 | ) | (6,106 | ) | ||||||||
Net amortization of premiums and accrued interest of investments | 628 | 1,353 | ||||||||||
Asset impairments | 770 | - | ||||||||||
Gain on investment securities and other | (86 | ) | (1,767 | ) | ||||||||
Excess tax benefits from stock option transactions | - | (2,274 | ) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Accounts receivable, net | (934 | ) | 1,923 | |||||||||
Inventories, net | (3,514 | ) | (7,110 | ) | ||||||||
Prepaid expenses and other current assets | 4,225 | 927 | ||||||||||
Accounts payable and accrued liabilities | (6,699 | ) | (8,614 | ) | ||||||||
Deferred taxes and income taxes payable | 8,608 | 11,120 | ||||||||||
Deferred income | (1,980 | ) | (915 | ) | ||||||||
Net cash provided by operating activities | 61,471 | 43,154 | ||||||||||
Cash flows from investing activities: | ||||||||||||
Business acquisition | (10,000 | ) | (96,098 | ) | ||||||||
Investment in long term deposits | - | (1,127 | ) | |||||||||
Purchases of property and equipment | (11,175 | ) | (11,297 | ) | ||||||||
Purchase of intangible assets | (1,167 | ) | (2,048 | ) | ||||||||
Redemption of short-term investments | 4,920 | 8,466 | ||||||||||
Disposals of investment securities and other investments | 37,936 | 146,340 | ||||||||||
Purchases of investment securities and other investments | (67,727 | ) | (172,114 | ) | ||||||||
Net cash used in investing activities | (47,213 | ) | (127,878 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||
Payment of debt issuance costs | - | (928 | ) | |||||||||
Proceeds from short-term loan and credit facility | 30,000 | - | ||||||||||
Repayment of credit facility | (60,000 | ) | - | |||||||||
Proceeds from issuance of common stock | 17,924 | 23,476 | ||||||||||
Repurchases of common stock | (11,496 | ) | (22,544 | ) | ||||||||
Excess tax benefits from stock option transactions | - | 2,274 | ||||||||||
Net cash (used in) provided by financing activities | (23,572 | ) | 2,278 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (784 | ) | (505 | ) | ||||||||
Net decrease in cash and cash equivalents | (10,098 | ) | (82,951 | ) | ||||||||
Cash and cash equivalents, beginning of the period | 100,038 | 169,970 | ||||||||||
Cash and cash equivalents, end of the period | $ | 89,940 | $ | 87,019 |
Contact:
PMC-Sierra, Inc.
Joel Achramowicz, 1-408-239-8630
Director, Investor Relations
Joel.Achramowicz@pmcs.com
Kim Mason, 1-604-415-6239
Manager, Corporate Communications
Kim.Mason@pmcs.com
Company Snapshot |
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Microsemi Canada (formerly PMC-Sierra)
Burnaby, BC (InfoTech)
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