Exhibit 99.01
For more information, please contact:
Investors and Shareholders
Jennifer Jordan
Cadence Design Systems, Inc.
408-944-7100
investor_relations@cadence.com
Media and Industry Analysts
Lynne Cox
Cadence Design Systems, Inc.
408-914-6016
publicrelations@cadence.com
Cadence Reports Q3 2009 Financial Results
SAN JOSE, Calif. — October 28, 2009 — Cadence Design Systems, Inc. (NASDAQ: CDNS) today
announced results for the third quarter 2009.
Cadence reported third quarter 2009 revenue of $216 million, compared to revenue of $232
million reported for the same period in 2008. On a GAAP basis, Cadence recognized a net loss of $14
million, or $(0.05) per share on a diluted basis, in the third quarter of 2009, compared to a net
loss of $171 million, or $(0.67) per share on a diluted basis in the same period in 2008.
In addition to using GAAP results in evaluating Cadence’s business, management believes it is
useful to measure results using a non-GAAP measure of net income or net loss, which excludes, as
applicable, amortization of intangible assets, stock-based compensation expense, in-process
research and development charges, costs related to a withdrawn acquisition proposal and losses on
the sale of shares of the target company stock, integration and acquisition-related costs, gains or
losses and expenses or credits related to non-qualified deferred compensation plan assets,
executive severance costs, restructuring charges and credits, amortization of discount on
convertible notes, equity in losses (income) from investments, write-down of investments,
impairment charges related to goodwill, intangible assets and fixed assets, and losses related to
the liquidation of a subsidiary. Non-GAAP net income or net loss is adjusted by the amount of
additional taxes or tax benefit that the company would accrue if it used non-GAAP results instead
of GAAP results to calculate the company’s tax liability. See
“GAAP to non-GAAP Reconciliation” below for further information on the non-GAAP measure.
1
Using this non-GAAP measure, net income in the third quarter of 2009 was $7 million, or $0.03
per share on a diluted basis, as compared to a net loss of $23 million, or $(0.09) per share on a
diluted basis, in the same period in 2008.
“The increased level of R&D engagement with customers is well received, and we are winning
with technologies that address our customers’ need for better design productivity, increased
predictability of schedule and results, and faster time-to-market,” said Lip-Bu Tan, president and
chief executive officer.
Added Kevin S. Palatnik, senior vice president and chief financial officer, “Third quarter
results represent strong operational execution by the Cadence team. Sequential revenue growth met
expectations, operating profitability improved significantly and we ended the quarter with more
than $570 million in cash.”
The following statements are based on current expectations. These statements are
forward-looking, and actual results may differ materially.
Business Outlook
For the fourth quarter of 2009, the company expects total revenue in the range of $215 million
to $225 million. Fourth quarter GAAP net loss per diluted share is expected to be in the range of
$(0.08) to $(0.06). Net income per diluted share using the non-GAAP measure defined below is
expected to be in the range of $0.02 to $0.04.
For the full year 2009, the company expects total revenue in the range of $845 million to $855
million. On a GAAP basis, net loss per diluted share for fiscal 2009 is expected to be in the range
of $(0.66) to $(0.64). Using the non-GAAP measure defined below, net loss per diluted share for
fiscal 2009 is expected to be in the range of $(0.10) to $(0.08).
A schedule showing a reconciliation of the business outlook from GAAP net loss and diluted net
loss per share to the non-GAAP net income or net loss and diluted net income or net loss per share
is included with this release.
2
Audio Webcast Scheduled
Lip-Bu Tan, Cadence’s President and Chief Executive Officer, and Kevin S. Palatnik, Cadence’s
Senior Vice President and Chief Financial Officer, will host a third quarter 2009 financial results
audio webcast today, October 28, 2009, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked
to register at the Web site at least 10 minutes prior to the scheduled webcast. An archive of the
webcast will be available starting October 28, 2009 at 5 p.m. (Pacific) and ending November 11,
2009 at 5 p.m. (Pacific). Webcast access is available at
www.cadence.com/company/investor_relations.
About Cadence
Cadence enables global electronic-design innovation and plays an essential role in the
creation of today’s integrated circuits and electronics. Customers use Cadence® software and
hardware, methodologies, and services to design and verify advanced semiconductors, consumer
electronics, networking and telecommunications equipment, and computer systems. The company is
headquartered in San Jose, Calif., with sales offices, design centers, and research facilities
around the world to serve the global electronics industry. More information about Cadence and its
products and services is available at www.cadence.com.
Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. All other
trademarks are the property of their respective owners.
The statements contained above regarding the company’s third quarter 2009 results, as well as
the comments in the Business Outlook section and the statements by Lip-Bu Tan and Kevin S. Palatnik
include forward-looking statements based on current expectations or beliefs, as well as a number of
preliminary assumptions about future events that are subject to factors and uncertainties that
could cause actual results to differ materially from those described in the forward-looking
statements. Readers are cautioned not to put undue reliance on these forward-looking statements,
which are not a guarantee of future performance and are subject to a number of risks, uncertainties
and other factors, many of which are outside Cadence’s control, including, among others: (i)
Cadence’s ability to compete successfully in the electronic design automation product and the
commercial electronic design and methodology services industries; (ii) Cadence’s ability to
successfully complete and realize the expected benefits of the previously announced restructurings
without significant unexpected costs or delays, and the success of Cadence’s other efforts to
improve operational efficiency and growth; (iii) the mix of products and services sold and the
timing of significant orders for Cadence’s products, and its shift to a
ratable license structure, which may result in changes in the mix of license types; (iv)
change in customer demands, including the possibility that the previously announced restructurings
and
3
other efforts to improve operational efficiency could result in delays in customers’ purchases
of products and services; (v) economic and industry conditions in regions in which Cadence does
business; (vi) fluctuations in rates of exchange between the U.S. dollar and the currencies of
other countries in which Cadence does business; (vii) capital expenditure requirements, legislative
or regulatory requirements, interest rates and Cadence’s ability to access capital and debt
markets; (viii) the acquisition of other companies or technologies or the failure to successfully
integrate and operate these companies or technologies Cadence acquires; (ix) the effects of the
previously announced restructurings and other efforts to improve operational efficiency on
Cadence’s business, including its strategic and customer relationships, ability to retain key
employees and stock prices; and (x) the effects of any litigation or other proceedings to which
Cadence is or may become a party.
For a detailed discussion of these and other cautionary statements, please refer to the
company’s filings with the Securities and Exchange Commission. These include the company’s Annual
Report on Form 10-K for the year ended January 3, 2009, the company’s Quarterly Report on Form 10-Q
for the period ended July 4, 2009, and the company’s future filings.
4
Adoption of accounting principles required by the “Debt with Conversion and Other Options” subtopic
of the FASB Accounting Standards Codification
On the first day of fiscal 2009, Cadence adopted new accounting principles as required by the
“Debt with Conversion and Other Options” subtopic of the FASB Accounting Standards Codification.
Accordingly, Cadence has adjusted the applicable prior period balance sheets and statements of
operations to reflect the adjusted balance of the convertible notes and related items, and to
record the amortization of the discount on the convertible notes as non-cash interest expense. A
reconciliation of Cadence’s as-adjusted Condensed Consolidated Balance Sheets as of January 3, 2009
and its as-adjusted Condensed Consolidated Statements of Operations for the three months and nine
months ended September 27, 2008 to their respective statements as initially reported is included
with this release.
GAAP to non-GAAP Reconciliation
Cadence management evaluates and makes operating decisions using various operating measures.
These measures are generally based on the revenues of its product, maintenance and services
business operations and certain costs of those operations, such as cost of revenues, research and
development, sales and marketing and general and administrative expenses. One such measure is
non-GAAP net income or net loss, which is a non-GAAP financial measure under Section 101 of
Regulation G under the Securities Exchange Act of 1934, as amended, and is GAAP net income or net
loss excluding, as applicable, amortization of intangible assets, stock-based compensation expense,
in-process research and development charges, costs related to a withdrawn acquisition proposal and
losses on the sale of shares of the target company stock, integration and acquisition-related
costs, gains or losses and expenses or credits related to non-qualified deferred compensation plan
assets, executive severance costs, restructuring charges and credits, amortization of discount on
convertible notes, equity in losses (income) from investments, write-down of investments,
impairment charges related to goodwill, intangible assets and fixed assets, and losses related to
the liquidation of a subsidiary. Intangible assets consist primarily of purchased or licensed
technology, backlog, patents, trademarks, distribution rights, customer contracts and related
relationships and non-compete agreements. Non-GAAP net income or net loss is adjusted by the amount
of additional taxes or tax benefit that the company would accrue if it used non-GAAP results
instead of GAAP results to calculate the company’s tax liability.
Cadence’s management believes it is useful in measuring Cadence’s operations to exclude
amortization of intangible assets, in-process research and development charges and integration and
acquisition-related costs because these costs are primarily fixed at the time of an acquisition and
generally cannot be changed by Cadence’s management in the short term. In addition, Cadence’s
management believes it is useful to exclude stock-based compensation expense because it enhances
investors’ ability to review Cadence’s business from the same perspective as Cadence’s management,
which believes that stock-based compensation expense is not directly attributable to the underlying
performance of the company’s business operations. Cadence’s management also believes that it is
useful to exclude restructuring charges and credits. During the second half of fiscal 2008 and the
first half of fiscal 2009, Cadence commenced restructuring programs that it expects to complete in
the first half of 2010. Cadence’s management believes that in measuring the company’s operations,
it is useful to exclude any such restructuring charges and credits because Cadence does not
undertake significant
5
restructuring on a regular basis, and exclusion of such charges permits consistent evaluations
of Cadence’s performance before and after such actions are taken. Cadence’s management also
believes it is useful to exclude executive severance costs because these costs do not occur
frequently. Cadence’s management believes it is useful to exclude gains or losses and expenses or
credits related to the non-qualified deferred compensation plan assets because these gains and
expenses are not part of Cadence’s direct costs of operations, but reflect changes in the value of
assets held in the non-qualified deferred compensation plan. Cadence’s management also believes it
is useful to exclude the amortization of the discount on convertible notes because this incremental
cost recorded as interest expense does not represent a cash obligation of the company and is not
part of Cadence’s direct cost of operations. Cadence’s management also believes it is useful to
exclude the equity in losses (income) from investments and write-down of investments because these
items are not part of Cadence’s direct cost of operations. Rather, these are non-operating items
that are included in other income (expense) and are part of the company’s investment activities.
Finally, Cadence’s management also believes it is useful to exclude impairment charges related to
goodwill, intangible assets and fixed assets, and losses related to the liquidation of a subsidiary
because these do not occur on a regular basis and are not part of the company’s direct costs of
operations.
During fiscal year 2008, Cadence’s non-GAAP net loss also excluded the impact of tax expense
associated with recording a valuation allowance against Cadence’s deferred tax assets. Cadence’s
management believes it is useful to exclude the tax expense associated with this valuation
allowance because Cadence does not expect changes in the valuation allowance of the magnitude
recorded in the fourth quarter of 2008 to be recorded frequently.
During fiscal year 2008, Cadence’s non-GAAP net loss also excluded the impact of tax expense
associated with Cadence’s repatriation of foreign earnings. Cadence’s management believes it is
useful to exclude the tax expense associated with the repatriation of foreign earnings because it
resulted from an event that is not expected to occur frequently.
During fiscal year 2008, Cadence’s non-GAAP net loss also excluded costs related to a
withdrawn acquisition proposal and losses on the sale of shares of the target company stock which
Cadence acquired as part of the proposed acquisition. Cadence’s management believes that in
measuring Cadence’s operations it is useful to exclude the costs and the losses associated with
this proposed acquisition because these items are not directly related to Cadence’s operating
performance and resulted from events that are not expected to occur frequently.
Cadence’s management believes that non-GAAP net income or net loss provides useful
supplemental information to Cadence’s management and investors regarding the performance of the
company’s business operations and facilitates comparisons to the company’s historical operating
results. Cadence’s management also uses this information internally for forecasting and budgeting.
Non-GAAP financial measures should not be considered as a substitute for or superior to measures of
financial performance prepared in accordance with GAAP. Investors and potential investors are
encouraged to review the reconciliation of non-GAAP financial measures contained within this press
release with their most directly comparable GAAP financial results.
6
The following tables reconcile the specific items excluded from GAAP net loss and GAAP net
loss per diluted share in the calculation of non-GAAP net income or net loss and non-GAAP net
income or net loss per diluted share for the periods shown below:
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| |
|
October 3, 2009 |
|
September 27, 2008 |
| Net Income (Loss) Reconciliation |
|
|
|
|
|
(As Adjusted)* |
| (in thousands) |
|
(unaudited) |
Net loss on a GAAP basis |
|
$ |
(14,047 |
) |
|
$ |
(170,656 |
) |
Amortization of acquired intangibles |
|
|
4,391 |
|
|
|
10,754 |
|
Stock-based compensation expense |
|
|
14,455 |
|
|
|
14,634 |
|
Non-qualified deferred compensation expenses |
|
|
3,752 |
|
|
|
188 |
|
Restructuring and other charges (credits) |
|
|
(175 |
) |
|
|
48,120 |
|
Cost related to a withdrawn acquisition proposal |
|
|
— |
|
|
|
3,153 |
|
Integration and acquisition-related costs |
|
|
155 |
|
|
|
234 |
|
Amortization of debt discount |
|
|
4,837 |
|
|
|
4,024 |
|
Equity in losses from investments, write-down
of investments, gains and losses on
non-qualified deferred compensation plan assets
— recorded in Other income (expense), net |
|
|
(2,913 |
) |
|
|
2,798 |
|
Losses on the sale of shares of withdrawn
acquisition target company stock |
|
|
— |
|
|
|
9,379 |
|
Income tax related to repatriation of foreign
earnings |
|
|
— |
|
|
|
71,047 |
|
Income tax effect of non-GAAP adjustments |
|
|
(3,055 |
) |
|
|
(16,352 |
) |
|
|
|
|
|
|
|
Net income (loss) on a non-GAAP basis |
|
$ |
7,400 |
|
|
$ |
(22,677 |
) |
|
|
|
|
|
|
|
|
|
|
| * |
|
Adjusted for the retrospective adoption of new accounting principles as required by the “Debt
with Conversion and Other Options” subtopic of the FASB Accounting Standards Codification. |
7
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
| Diluted Net Income (Loss) per Share |
|
October 3, 2009 |
|
September 27, 2008 |
| Reconciliation |
|
|
|
|
|
(As Adjusted)* |
| (in thousands, except per share data) |
|
(unaudited) |
Diluted net loss per share on a GAAP basis |
|
$ |
(0.05 |
) |
|
$ |
(0.67 |
) |
Amortization of acquired intangibles |
|
|
0.02 |
|
|
|
0.04 |
|
Stock-based compensation expense |
|
|
0.05 |
|
|
|
0.06 |
|
Non-qualified deferred compensation expenses |
|
|
0.01 |
|
|
|
— |
|
Restructuring and other charges (credits) |
|
|
— |
|
|
|
0.19 |
|
Costs related to a withdrawn acquisition proposal |
|
|
— |
|
|
|
0.01 |
|
Amortization of debt discount |
|
|
0.02 |
|
|
|
0.02 |
|
Equity in losses from investments, write-down of
investments, gains and losses on non-qualified
deferred compensation plan assets — recorded in
Other income (expense), net |
|
|
(0.01 |
) |
|
|
0.01 |
|
Losses on the sale of shares of withdrawn
acquisition target company stock |
|
|
— |
|
|
|
0.04 |
|
Income tax related to repatriation of foreign
earnings |
|
|
— |
|
|
|
0.28 |
|
Income tax effect of non-GAAP adjustments |
|
|
(0.01 |
) |
|
|
(0.07 |
) |
|
|
|
|
|
|
|
Diluted net income (loss) per share on a non-GAAP
basis |
|
$ |
0.03 |
|
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
Shares used in calculation of diluted net loss per
share —GAAP (A) |
|
|
259,193 |
|
|
|
252,915 |
|
Shares used in calculation of diluted net income
(loss) per share —non-GAAP (A) |
|
|
262,553 |
|
|
|
252,915 |
|
|
|
|
| (A) |
|
Shares used in the calculation of GAAP net income (loss) per share are expected to be the
same as shares used in the calculation of non-GAAP net income (loss) per share, except when the
company reports a GAAP net loss and non-GAAP net income, or GAAP net income and a non-GAAP net
loss. |
| |
| * |
|
Adjusted for the retrospective adoption of new accounting principles as required by the
“Debt with Conversion and Other Options” subtopic of the FASB Accounting Standards Codification. |
8
Investors are encouraged to look at the GAAP results as the best measure of financial
performance. For example, amortization of intangibles or in-process technology are important to
consider because they may represent initial expenditures that under GAAP are reported across future
fiscal periods. Likewise, stock-based compensation expense is an obligation of the company that
should be considered. Restructuring charges can be triggered by acquisitions or product
adjustments, as well as overall company performance within a given business environment. All of
these metrics are important to financial performance generally.
Although Cadence’s management finds the non-GAAP measure useful in evaluating the performance
of Cadence’s business, reliance on this measure is limited because items excluded from such
measures often have a material effect on Cadence’s earnings and earnings per share calculated in
accordance with GAAP. Therefore, Cadence’s management typically uses the non-GAAP earnings and
earnings per share measures, in conjunction with the GAAP earnings and earnings per share measures,
to address these limitations.
Cadence’s management believes that presenting the non-GAAP measure of earnings and earnings
per share provides investors with an additional tool for evaluating the performance of the
company’s business, which Cadence’s management uses in its own evaluation of performance, and an
additional baseline for assessing the future earnings potential of the company. While the GAAP
results are more complete, Cadence’s management prefers to allow investors to have this
supplemental measure since it may provide additional insights into the company’s financial results.
Cadence expects that its corporate representatives will meet privately during the quarter with
investors, the media, investment analysts and others. At these meetings, Cadence may reiterate the
business outlook published in this press release. At the same time, Cadence will keep this press
release, including the business outlook, publicly available on its Web site.
Prior to the start of the Quiet Period (described below), the public may continue to rely on
the business outlook contained herein as still being Cadence’s current expectations on matters
covered unless Cadence publishes a notice stating otherwise.
Beginning December 18, 2009, Cadence will observe a Quiet Period during which the business
outlook as provided in this press release and the company’s most recent Annual Report on Form 10-K
and Quarterly Report on Form 10-Q no longer constitute the company’s current expectations. During
the Quiet Period, the business outlook in these documents should be considered to be historical,
speaking as of prior to the Quiet Period only and not subject to any update by the company. During
the Quiet Period, Cadence’s representatives will not comment on Cadence’s business outlook,
financial results or expectations. The Quiet Period will extend until the day when Cadence’s Fourth
Quarter 2009 Earnings Release is published, which is currently scheduled for February 3, 2010.
# # #
9
Cadence Design Systems, Inc.
Condensed Consolidated Balance Sheets
October 3, 2009 and January 3, 2009
(In thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
October 3, 2009 |
|
|
January 3, 2009 |
|
| |
|
|
|
|
|
(As Adjusted)* |
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
570,617 |
|
|
$ |
568,255 |
|
Short-term investments |
|
|
4,756 |
|
|
|
3,840 |
|
Receivables, net of allowances of $15,208 and $7,524,
respectively |
|
|
195,468 |
|
|
|
298,665 |
|
Inventories |
|
|
25,626 |
|
|
|
28,465 |
|
Prepaid expenses and other |
|
|
64,694 |
|
|
|
54,765 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
861,161 |
|
|
|
953,990 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net of accumulated
depreciation of $630,155 and $625,010, respectively |
|
|
313,398 |
|
|
|
354,852 |
|
Acquired intangibles, net of accumulated amortization of
$122,677 and $134,688, respectively |
|
|
33,438 |
|
|
|
49,082 |
|
Installment contract receivables, net of allowances of
$9,724 and $0, respectively |
|
|
64,859 |
|
|
|
160,742 |
|
Other assets |
|
|
141,361 |
|
|
|
161,187 |
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
1,414,217 |
|
|
$ |
1,679,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
159,728 |
|
|
|
261,099 |
|
Current portion of deferred revenue |
|
|
245,528 |
|
|
|
303,111 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
405,256 |
|
|
|
564,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
|
Long-term portion of deferred revenue |
|
|
108,941 |
|
|
|
130,354 |
|
Convertible notes |
|
|
431,072 |
|
|
|
416,572 |
|
Other long-term liabilities |
|
|
372,756 |
|
|
|
382,004 |
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
912,769 |
|
|
|
928,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
96,192 |
|
|
|
186,713 |
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
1,414,217 |
|
|
$ |
1,679,853 |
|
|
|
|
|
|
|
|
|
|
|
| * |
|
Adjusted for the retrospective adoption of new accounting principles, as required by the “Debt
with Conversion
and Other Options” subtopic of the FASB Accounting Standards Codification, on the first day
of fiscal 2009. |
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended October 3, 2009 and September 27, 2008
(In thousands, except per share amounts)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
October 3, 2009 |
|
|
September 27, 2008 |
|
|
October 3, 2009 |
|
|
September 27, 2008 |
|
| |
|
|
|
|
|
(As Adjusted)* |
|
|
|
|
|
|
(As Adjusted)* |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
96,932 |
|
|
$ |
107,572 |
|
|
$ |
286,295 |
|
|
$ |
422,365 |
|
Services |
|
|
26,669 |
|
|
|
32,873 |
|
|
|
83,684 |
|
|
|
98,763 |
|
Maintenance |
|
|
92,521 |
|
|
|
92,043 |
|
|
|
262,374 |
|
|
|
290,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
216,122 |
|
|
|
232,488 |
|
|
|
632,353 |
|
|
|
811,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product |
|
|
6,405 |
|
|
|
11,829 |
|
|
|
23,828 |
|
|
|
39,241 |
|
Cost of services |
|
|
21,139 |
|
|
|
25,677 |
|
|
|
69,602 |
|
|
|
78,083 |
|
Cost of maintenance |
|
|
11,105 |
|
|
|
13,910 |
|
|
|
35,423 |
|
|
|
42,889 |
|
Marketing and sales |
|
|
68,282 |
|
|
|
91,075 |
|
|
|
214,603 |
|
|
|
274,016 |
|
Research and development |
|
|
88,049 |
|
|
|
112,486 |
|
|
|
273,394 |
|
|
|
357,929 |
|
General and administrative |
|
|
28,732 |
|
|
|
32,937 |
|
|
|
101,311 |
|
|
|
105,608 |
|
Amortization of acquired intangibles |
|
|
2,726 |
|
|
|
5,626 |
|
|
|
8,694 |
|
|
|
17,206 |
|
Restructuring and other charges (credits) |
|
|
(175 |
) |
|
|
48,120 |
|
|
|
17,833 |
|
|
|
47,765 |
|
Write-off of acquired in-process technology |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
226,263 |
|
|
|
341,660 |
|
|
|
744,688 |
|
|
|
963,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(10,141 |
) |
|
|
(109,172 |
) |
|
|
(112,335 |
) |
|
|
(152,058 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(7,278 |
) |
|
|
(7,042 |
) |
|
|
(21,592 |
) |
|
|
(20,696 |
) |
Other income (expense), net |
|
|
2,917 |
|
|
|
(7,714 |
) |
|
|
(5,765 |
) |
|
|
(3,701 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision (benefit) for income taxes |
|
|
(14,502 |
) |
|
|
(123,928 |
) |
|
|
(139,692 |
) |
|
|
(176,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income taxes |
|
|
(455 |
) |
|
|
46,728 |
|
|
|
11,969 |
|
|
|
46,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(14,047 |
) |
|
$ |
(170,656 |
) |
|
$ |
(151,661 |
) |
|
$ |
(222,610 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
|
$ |
(0.05 |
) |
|
$ |
(0.67 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding — basic and diluted |
|
|
259,193 |
|
|
|
252,915 |
|
|
|
256,792 |
|
|
|
256,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
|
Adjusted for the retrospective adoption of new accounting principles, as required by the “Debt
with Conversion and Other Options”
subtopic of the FASB Accounting Standards Codification, on the first day of fiscal 2009. |
Cadence Design Systems, Inc.
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended October 3, 2009 and September 27, 2008
(In thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended |
|
| |
|
October 3, |
|
|
September 27, |
|
| |
|
2009 |
|
|
2008 |
|
| |
|
|
|
|
(As Adjusted)* |
|
Cash and Cash Equivalents at Beginning of Period |
|
$ |
568,255 |
|
|
$ |
1,062,920 |
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
|
(151,661 |
) |
|
|
(222,610 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
71,334 |
|
|
|
96,037 |
|
Amortization of debt discount and fees |
|
|
15,557 |
|
|
|
13,323 |
|
Stock-based compensation |
|
|
43,690 |
|
|
|
57,678 |
|
Equity in loss from investments, net |
|
|
369 |
|
|
|
823 |
|
Loss on investments, net |
|
|
4,307 |
|
|
|
11,440 |
|
(Gain) loss on sale and leaseback of land and buildings |
|
|
(122 |
) |
|
|
350 |
|
Write-down of investment securities |
|
|
5,207 |
|
|
|
10,666 |
|
Write-off of acquired in-process technology |
|
|
— |
|
|
|
600 |
|
Tax benefit of call options |
|
|
— |
|
|
|
2,994 |
|
Impairment of property, plant and equipment |
|
|
6,603 |
|
|
|
2,004 |
|
Deferred income taxes |
|
|
(6,520 |
) |
|
|
(11,094 |
) |
Proceeds from the sale of receivables, net |
|
|
5,827 |
|
|
|
48,124 |
|
Provisions for losses on trade and installment contract receivables and sales returns |
|
|
18,668 |
|
|
|
462 |
|
Other non-cash items |
|
|
(3,962 |
) |
|
|
(3,119 |
) |
Changes in operating assets and liabilities, net of effect of acquired businesses: |
|
|
|
|
|
|
|
|
Receivables |
|
|
56,444 |
|
|
|
21,489 |
|
Installment contract receivables |
|
|
122,302 |
|
|
|
46,198 |
|
Inventories |
|
|
2,846 |
|
|
|
5,486 |
|
Prepaid expenses and other |
|
|
(4,041 |
) |
|
|
(3,421 |
) |
Other assets |
|
|
11,809 |
|
|
|
(1,849 |
) |
Accounts payable and accrued liabilities |
|
|
(79,395 |
) |
|
|
(41,582 |
) |
Deferred revenue |
|
|
(83,760 |
) |
|
|
(32,243 |
) |
Other long-term liabilities |
|
|
(10,773 |
) |
|
|
35,972 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
24,729 |
|
|
|
37,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
Proceeds from the sale of available-for-sale securities |
|
|
139 |
|
|
|
53,783 |
|
Purchases of available-for-sale securities |
|
|
— |
|
|
|
(62,447 |
) |
Proceeds from the sale of long-term investments |
|
|
— |
|
|
|
3,250 |
|
Purchases of property, plant and equipment |
|
|
(30,504 |
) |
|
|
(81,112 |
) |
Purchases of software licenses |
|
|
(774 |
) |
|
|
(1,199 |
) |
Investment in venture capital partnerships and equity investments |
|
|
(2,300 |
) |
|
|
(4,053 |
) |
Cash paid in business combinations and asset acquisitions, net of cash acquired,
and acquisition of intangibles |
|
|
(14,126 |
) |
|
|
(20,621 |
) |
|
|
|
|
|
|
|
Net cash used for investing activities |
|
|
(47,565 |
) |
|
|
(112,399 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from receivable sale financing |
|
|
— |
|
|
|
17,970 |
|
Principal payments on receivable sale financing |
|
|
(2,467 |
) |
|
|
— |
|
Payment of convertible notes due 2023 |
|
|
— |
|
|
|
(230,207 |
) |
Tax benefit from employee stock transactions |
|
|
— |
|
|
|
427 |
|
Proceeds from issuance of common stock |
|
|
27,862 |
|
|
|
48,116 |
|
Stock received for payment of employee taxes on vesting of restricted stock |
|
|
(4,055 |
) |
|
|
(3,693 |
) |
Purchases of treasury stock |
|
|
— |
|
|
|
(273,950 |
) |
|
|
|
|
|
|
|
Net cash provided by (used for) financing activities |
|
|
21,340 |
|
|
|
(441,337 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
3,858 |
|
|
|
4,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
|
2,362 |
|
|
|
(511,167 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at End of Period |
|
$ |
570,617 |
|
|
$ |
551,753 |
|
|
|
|
|
|
|
|
|
|
|
| * |
|
Adjusted for the retrospective adoption of new accounting principles, as required by the “Debt with Conversion and Other Options” subtopic of the
FASB Accounting Standards Codification, on the first day of fiscal 2009. |
Cadence Design Systems, Inc.
As of October 28, 2009
Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Loss Per Share
(Unaudited)
| |
|
|
|
|
| |
|
Three Months Ending |
|
Year Ending |
| |
|
January 2, 2010 |
|
January 2, 2010 |
| |
|
Forecast |
|
Forecast |
Diluted net loss per share on a GAAP basis |
|
$(0.08) to $(0.06) |
|
$(0.66) to $(0.64) |
|
|
|
|
|
Amortization of acquired intangibles |
|
0.02 |
|
0.08 |
Stock-based compensation expense |
|
0.05 |
|
0.22 |
Non-qualified deferred compensation expenses (credits) |
|
— |
|
(0.02) |
Restructuring and other charges |
|
0.01 |
|
0.08 |
Equity in losses from investments, write-down of investments,
gains and losses on non-qualified deferred compensation
plan assets |
|
— |
|
0.04 |
Amortization of debt discount |
|
0.02 |
|
0.07 |
Income tax effect of non-GAAP adjustments |
|
— |
|
0.09 |
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share on a non-GAAP basis |
|
$0.02 to $0.04 |
|
$(0.10) to $(0.08) |
|
|
|
|
|
Cadence Design Systems, Inc.
As of October 28, 2009
Impact of Non-GAAP Adjustments on Forward Looking Net Loss
(Unaudited)
| |
|
|
|
|
| |
|
Three Months Ending |
|
Year Ending |
| |
|
January 2, 2010 |
|
January 2, 2010 |
| ($ in Millions) |
|
Forecast |
|
Forecast |
Net loss on a GAAP basis |
|
$(19) to $(15) |
|
$(171) to $(167) |
|
|
|
|
|
Amortization of acquired intangibles |
|
4 |
|
20 |
Stock-based compensation expense |
|
13 |
|
56 |
Non-qualified deferred compensation expenses (credits) |
|
— |
|
(4) |
Restructuring and other charges |
|
2 |
|
20 |
Integration and acquisition-related costs |
|
— |
|
1 |
Equity in losses from investments, write-down of investments,
gains and losses on non-qualified deferred compensation
plan assets |
|
— |
|
10 |
Amortization of debt discount |
|
5 |
|
19 |
Income tax effect of non-GAAP adjustments |
|
1 |
|
24 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) on a non-GAAP basis |
|
$6 to $10 |
|
$(25) to $(21) |
|
|
|
|
|
Cadence Design Systems, Inc.
(Unaudited)
Revenue Mix by Geography (% of Total Revenue)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2007 |
|
2008 |
|
2009 |
| GEOGRAPHY |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
| |
|
|
|
|
|
|
Americas |
|
|
48 |
% |
|
|
52 |
% |
|
|
41 |
% |
|
|
50 |
% |
|
|
49 |
% |
|
|
43 |
% |
|
|
48 |
% |
|
|
43 |
% |
|
|
45 |
% |
|
|
45 |
% |
|
|
42 |
% |
|
|
48 |
% |
|
|
43 |
% |
Europe |
|
|
15 |
% |
|
|
17 |
% |
|
|
25 |
% |
|
|
17 |
% |
|
|
18 |
% |
|
|
24 |
% |
|
|
21 |
% |
|
|
23 |
% |
|
|
22 |
% |
|
|
22 |
% |
|
|
24 |
% |
|
|
21 |
% |
|
|
20 |
% |
Japan |
|
|
27 |
% |
|
|
14 |
% |
|
|
22 |
% |
|
|
22 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
18 |
% |
|
|
20 |
% |
|
|
19 |
% |
|
|
17 |
% |
|
|
23 |
% |
Asia |
|
|
10 |
% |
|
|
17 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
13 |
% |
|
|
15 |
% |
|
|
14 |
% |
|
|
14 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Revenue Mix by Product Group (% of Total Revenue)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2007 |
|
2008 |
|
2009 |
| PRODUCT GROUP |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Year |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
| |
|
|
|
|
|
|
Functional Verification |
|
|
24 |
% |
|
|
24 |
% |
|
|
20 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
22 |
% |
|
|
25 |
% |
|
|
22 |
% |
|
|
17 |
% |
|
|
22 |
% |
|
|
20 |
% |
|
|
23 |
% |
|
|
21 |
% |
Digital IC Design |
|
|
26 |
% |
|
|
29 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
24 |
% |
|
|
24 |
% |
|
|
20 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
19 |
% |
|
|
24 |
% |
|
|
19 |
% |
Custom IC Design |
|
|
24 |
% |
|
|
24 |
% |
|
|
32 |
% |
|
|
25 |
% |
|
|
27 |
% |
|
|
26 |
% |
|
|
23 |
% |
|
|
26 |
% |
|
|
23 |
% |
|
|
24 |
% |
|
|
26 |
% |
|
|
25 |
% |
|
|
28 |
% |
Design for Manufacturing |
|
|
7 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
6 |
% |
|
|
5 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
7 |
% |
|
|
6 |
% |
|
|
9 |
% |
|
|
5 |
% |
|
|
9 |
% |
System Interconnect |
|
|
10 |
% |
|
|
8 |
% |
|
|
7 |
% |
|
|
9 |
% |
|
|
8 |
% |
|
|
11 |
% |
|
|
10 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
12 |
% |
|
|
10 |
% |
|
|
11 |
% |
Services & Other |
|
|
9 |
% |
|
|
8 |
% |
|
|
8 |
% |
|
|
7 |
% |
|
|
8 |
% |
|
|
12 |
% |
|
|
11 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
13 |
% |
|
|
14 |
% |
|
|
13 |
% |
|
|
12 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
| |
|
|
| Note: Product Group total revenue includes Product + Maintenance |
Cadence Design Systems, Inc.
Impact of Retrospective Adoption of the “Debt with Conversion and Other Options”
Subtopic of the FASB Accounting Standards Codification
On Previously Reported Condensed Consolidated Balance Sheets as of January 3, 2009
(In thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As of January 3, 2009 |
|
| |
|
As Previously |
|
|
|
|
|
|
As |
|
| |
|
Reported |
|
|
Adjustments |
|
|
Adjusted |
|
Current assets |
|
$ |
954,548 |
|
|
$ |
(558 |
)(A) |
|
$ |
953,990 |
|
Property, plant and equipment, net |
|
|
351,961 |
|
|
|
2,891 |
(B) |
|
|
354,852 |
|
Acquired intangibles, net |
|
|
49,082 |
|
|
|
— |
|
|
|
49,082 |
|
Installment contract receivables |
|
|
160,742 |
|
|
|
— |
|
|
|
160,742 |
|
Other assets |
|
|
162,381 |
|
|
|
(1,194 |
)(C) |
|
|
161,187 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
1,678,714 |
|
|
$ |
1,139 |
|
|
$ |
1,679,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
564,210 |
|
|
$ |
— |
|
|
$ |
564,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term portion of deferred revenue |
|
|
130,354 |
|
|
|
— |
|
|
|
130,354 |
|
Convertible notes |
|
|
500,178 |
|
|
|
(83,606 |
)(D) |
|
|
416,572 |
|
Other long-term liabilities |
|
|
382,004 |
|
|
|
— |
|
|
|
382,004 |
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
1,012,536 |
|
|
|
(83,606 |
) |
|
|
928,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and capital in excess of par value |
|
|
1,562,079 |
|
|
|
97,223 |
(E) |
|
|
1,659,302 |
|
Treasury stock, at cost |
|
|
(695,152 |
) |
|
|
— |
|
|
|
(695,152 |
) |
Accumulated deficit |
|
|
(802,201 |
) |
|
|
(12,478 |
)(F) |
|
|
(814,679 |
) |
Accumulated other comprehensive income |
|
|
37,242 |
|
|
|
— |
|
|
|
37,242 |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
101,968 |
|
|
|
84,745 |
|
|
|
186,713 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
1,678,714 |
|
|
$ |
1,139 |
|
|
$ |
1,679,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (A) |
|
This amount represents the cumulative adjustments to the current portion of debt issuance costs associated with Cadence’s Convertible Senior Notes. |
| |
| (B) |
|
This amount represents the cumulative capitalized interest related to the amortization of debt discount. |
| |
| (C) |
|
This amount represents the cumulative adjustments to the long-term portion of debt issuance costs associated with Cadence’s Convertible Senior
Notes and the cumulative impact on the net deferred tax assets related to the amortization of debt discount. |
| |
| (D) |
|
This amount represents the remaining unamortized debt discount on Cadence’s Convertible Senior Notes as of January 3, 2009. |
| |
| (E) |
|
This amount represents the equity component of Cadence’s Convertible Senior Notes, net of tax adjustments to the tax benefit of call options,
due to the amortization of debt discount. |
| |
| (F) |
|
This amount represents the cumulative Net loss impact of the amortization of debt discount and the associated tax adjustments since inception of
Cadence’s Convertible Senior Notes. |
Cadence Design Systems, Inc.
Impact of Retrospective Adoption of the “Debt with Conversion and Other Options”
Subtopic of the FASB Accounting Standards Codification
On Previously Reported Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended September 27, 2008
(In thousands, except per share amounts)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended September 27, 2008 |
|
| |
|
As Previously |
|
|
|
|
|
|
As |
|
| |
|
Reported |
|
|
Adjustments |
|
|
Adjusted |
|
Revenue |
|
$ |
232,488 |
|
|
$ |
— |
|
|
$ |
232,488 |
|
Costs and expenses |
|
|
341,660 |
|
|
|
— |
|
|
|
341,660 |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(109,172 |
) |
|
|
— |
|
|
|
(109,172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3,180 |
) |
|
|
(3,862 |
)(G) |
|
|
(7,042 |
) |
Other expense, net |
|
|
(7,714 |
) |
|
|
— |
|
|
|
(7,714 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
|
|
(120,066 |
) |
|
|
(3,862 |
) |
|
|
(123,928 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
49,000 |
|
|
|
(2,272 |
)(H) |
|
|
46,728 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(169,066 |
) |
|
$ |
(1,590 |
) |
|
$ |
(170,656 |
) |
|
|
|
|
|
|
|
|
|
|
| |
Basic and diluted net loss per share |
|
$ |
(0.67 |
) |
|
|
|
|
|
$ |
(0.67 |
) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine Months Ended September 27, 2008 |
|
| |
|
As Previously |
|
|
|
|
|
|
As |
|
| |
|
Reported |
|
|
Adjustments |
|
|
Adjusted |
|
Revenue |
|
$ |
811,279 |
|
|
$ |
— |
|
|
$ |
811,279 |
|
Costs and expenses |
|
|
963,337 |
|
|
|
— |
|
|
|
963,337 |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(152,058 |
) |
|
|
— |
|
|
|
(152,058 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(9,055 |
) |
|
|
(11,641 |
)(G) |
|
|
(20,696 |
) |
Other expense, net |
|
|
(3,701 |
) |
|
|
— |
|
|
|
(3,701 |
) |
|
|
|
|
|
|
|
|
|
|
Loss before provision for income taxes |
|
|
(164,814 |
) |
|
|
(11,641 |
) |
|
|
(176,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
50,269 |
|
|
|
(4,114 |
)(H) |
|
|
46,155 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(215,083 |
) |
|
$ |
(7,527 |
) |
|
$ |
(222,610 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
|
$ |
(0.84 |
) |
|
|
|
|
|
$ |
(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (G) |
|
This amount represents the amortization of debt discount, net of the decrease in interest expense associated with the debt issuance costs. |
| |
| (H) |
|
This amount represents the tax adjustments associated with the increased expense during the period. |