- Published: 24 July 2009
- Written by Editor
SunPower Reports Second-Quarter 2009 Results -- Q2 2009 revenue of $298 million, GAAP EPS of $0.26 and non-GAAP EPS of $0.24
SunPower Corp. (Nasdaq: SPWRA, SPWRB) today announced financial results for its 2009 second quarter which ended June 28, 2009. Revenue for the 2009 second quarter was $298 million which compares to revenues of $214 million in the first quarter of 2009 and $383 million in the second quarter of 2008. The company's Components and Systems segments accounted for 63% and 37% of second-quarter 2009 revenue, respectively.
"Our second-quarter results reflect the continued success of our diversified segment and market strategy as we benefited from the further growth in our dealer network and executed on our large scale project commitments," said Tom Werner, SunPower's CEO. "Additionally, our operational focus during the quarter enabled us to show progress in reducing inventory levels and in controlling variable expenses.
Our long-term strategy to build our brand based on superior experience, technology and return is paying off. As a result, we have successfully adjusted pricing to maintain market share and our price premium.
"Overall, we recorded solid second-quarter results in a demand driven market, consistent with our operating plan. In all of our markets, we are encouraged by the improving industry trends we are seeing in both end demand and financing and we are well positioned for further growth in the second half of the year and 2010. Our manufacturing costs are competitive today and we are ahead of plan to achieve our cost reduction goals. Customers continue to choose SunPower due to our superior roof top and power plant experience, industry leading performance of our solar panels and tracking technology, and our ability to drive attractive project returns for our customers."
On a Generally Accepted Accounting Principle (GAAP) basis for the 2009 second quarter, SunPower reported gross margin of 19.6%, operating income of $9.9 million and net income per share of $0.26. GAAP net income per diluted share for the second quarter of 2009 includes a $21.2 million, or $0.21 per diluted share, non-taxable gain related to the company's recent securities offering and a $5.9 million, or $0.04 per diluted share for non-cash interest charges associated with the adoption of the new FSP APB 14-1 accounting rule, which impacts how companies account for interest expense on convertible bonds.
On a non-GAAP basis, adjusted to exclude non-cash charges for amortization of intangible assets of $4.1 million, stock-based compensation of $11.6 million and non-cash interest expense of $5.9 million, SunPower reported total gross margin of 22.6%. Gross margin for the second quarter was negatively impacted by approximately $12 million from lower factory utilization due to the company's planned transition to a demand driven manufacturing strategy, which successfully focused on reducing inventory levels. Operating income for the quarter was $26.8 million and net income per diluted share was $0.24. This compares with first quarter 2009 non-GAAP gross margin of 24.3%, operating income of $11.5 million and $0.05 net income per diluted share. For the 2009 second quarter, the Components segment non-GAAP gross margin was 24.6% and Systems segment gross margin was 18.9%.
Diluted shares outstanding for the second quarter of 2009 reflect the impact of the company's recent capital raise completed May 5, 2009.
2009 Guidance
The company adjusted its fiscal year 2009 total company non-GAAP guidance as follows: total revenue of $1.35 billion to $1.7 billion, which compares to previous guidance of $1.3 billion to $1.7 billion, net income per diluted share of $1.15 to $1.60 and production of approximately 400 megawatts. The company's 2009 capital expenditure outlook remains unchanged at $250 million to $300 million. Full year 2009 non-GAAP earnings per share guidance was adjusted to reflect the capital raise completed issuance of equity and convertible debt in May 2009.
"Our current pipeline and backlog gives us confidence that we will be able to meet our second half 2009 guidance. This confidence stems from a number of large systems we expect to have financed in the third quarter, as well as the positive trends we are seeing in the commercial and residential segments," said Dennis Arriola, SunPower's CFO.
For fiscal year 2009, the company expects the following total company GAAP results: revenue of $1.35 billion to $1.7 billion and net income per diluted share of $0.45 to $0.90. GAAP earnings per share guidance includes a $0.21 per share one-time, non-taxable gain related to the company's recent offering and an approximately $0.12 expense for non-cash charges related to the company's previous adoption of FASB accounting rule FSB APB 14-1.
This press release contains both GAAP and non-GAAP financial information. Non-GAAP figures are reconciled to the closest GAAP equivalent figures on the final page of this press release. Please note that the company has posted supplemental information and slides related to its second-quarter 2009 performance on the Events and Presentations section of the SunPower Investor Relations page at http://investors.sunpowercorp.com/events.cfm.
About SunPower
Founded in 1985, SunPower Corp. (Nasdaq: SPWRA, SPWRB) designs, manufactures and delivers the planet's most powerful solar technology broadly available today. Residential, business, government and utility customers rely on the company's experience and proven results to maximize return on investment. With headquarters in San Jose, Calif., SunPower has offices in North America, Europe, Australia and Asia. For more information, visit www.sunpowercorp.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not represent historical facts and may be based on underlying assumptions. The company uses words and phrases such as "improving," "trends," "plan," "growth," "guidance," "outlook," "pipeline," "backlog," "will," and "expect" to identify forward-looking statements in this press release, including forward-looking statements regarding: (a) improving industry trends in end demand and financing; (b) achieving cost reduction goals; (c) growth opportunities in the second half of the year and 2010; (d) GAAP and non-GAAP fiscal year 2009 total revenue and net income per diluted share; (e) 2009 expected production and capital expenditures; (f) meeting second half 2009 guidance based on pipeline and backlog; (g) financing for large systems in the third quarter; (h) positive trends in the commercial and residential segments; and (i) expense for non-cash interest charges associated with the adoption of the new FSP APB 14-1 accounting rule. Such forward-looking statements are based on information available to the company as of the date of this release and involve a number of risks and uncertainties, some beyond the company's control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties such as: (i) the company's ability to obtain and maintain an adequate supply of raw materials and components, as well as the price it pays for such items; (ii) general business and economic conditions, including seasonality of the industry; (iii) growth trends in the solar power industry; (iv) the continuation of governmental and related economic incentives promoting the use of solar power; (v) the improved availability of third-party financing arrangements for the company's customers; (vi) construction difficulties or potential delays, including permitting and transmission access and upgrades; (vii) the company's ability to ramp new production lines and realize expected manufacturing efficiencies; (viii) manufacturing difficulties that could arise; (ix) the success of the company's ongoing research and development efforts to compete with other companies and competing technologies; (x) unanticipated changes in the GAAP expense for non-cash charges related to the adoption of FASB accounting rule 14-1; and (xi) other risks described in the company's Annual Report on Form 10-K for the year ended December 28, 2008, its Quarterly Report on Form 10-Q for the quarter ended March 29, 2009, and other filings with the Securities and Exchange Commission. These forward-looking statements should not be relied upon as representing the company's views as of any subsequent date, and the company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Segment Reporting Information
For second-quarter 2009 reporting purposes, the Systems segment generally represents products and services sold directly to the system owner. Additionally, both SunPower and third-party solar panels sold through the Systems segment channels are recorded as Systems segment revenue. The Components segment primarily represents products sold to installers and resellers.
Non-GAAP Measures
To supplement the consolidated financial results prepared under GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense, and their related tax effects. Management does not consider these charges in evaluating the core operational activities of SunPower. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate SunPower's current performance. Most analysts covering SunPower use the non-GAAP measures as well. Given management's use of these non-GAAP measures, SunPower believes these measures are important to investors in understanding SunPower's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in SunPower's core business across different time periods. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data and may be different from non-GAAP measures used by other companies.
Fiscal Periods
The Company reports on a fiscal-year basis and ends its quarters on the Sunday closest to the end of the applicable calendar quarter, except in a 53-week fiscal year, in which case the additional week falls into the fourth quarter of that fiscal year. Fiscal year 2009 consists of 53 weeks while fiscal year 2008 consisted of 52 weeks. The second quarter of fiscal 2009 ended on June 28, 2009 and the second quarter of fiscal 2008 ended on June 29, 2008.
SunPower is a registered trademark of SunPower Corp. All other trademarks are the property of their respective owners.
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Jun. 28, Dec. 28,
2009 2008
---- ----
ASSETS
Cash and cash equivalents $456,835 $202,331
Restricted cash 217,538 175,277
Investments 19,278 40,756
Accounts receivable, net 219,644 194,222
Costs and estimated earnings in excess of
billings 11,133 30,326
Inventories 262,893 251,542
Prepaid expenses and other assets 208,086 175,005
Advances to suppliers 141,148 162,610
Property, plant and equipment, net 683,011 629,247
Goodwill and other intangible assets, net 230,782 236,210
------- -------
Total assets $2,450,348 $2,097,526
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $151,987 $263,241
Accrued and other liabilities 163,872 191,140
Long-term debt 136,338 54,598
Convertible debt 532,840 357,173
Billings in excess of costs and estimated
earnings 50,710 11,806
Customer advances 102,216 110,394
------- -------
Total liabilities 1,137,963 988,352
Stockholders' equity 1,312,385 1,109,174
--------- ---------
Total liabilities and stockholders' equity $2,450,348 $2,097,526
========== ==========
SUNPOWER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------- ------------------
Jun. 28, Mar. 29, Jun. 29, Jun. 28, Jun. 29,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Revenue:
Systems $108,724 $106,097 $270,593 $214,821 $449,444
Components 188,920 107,690 112,158 296,610 207,008
------- ------- ------- ------- -------
297,644 213,787 382,751 511,431 656,452
Cost of revenue:
Cost of systems
revenue 91,793 88,351 209,223 180,144 352,487
Cost of
components
revenue 147,388 77,688 80,688 225,076 157,930
------- ------ ------ ------- -------
239,181 166,039 289,911 405,220 510,417
Gross margin 58,463 47,748 92,840 106,211 146,035
Operating expenses:
Research and
development 6,853 7,964 4,813 14,817 9,455
Selling, general
and
administrative 41,755 42,283 43,208 84,038 77,066
------ ------ ------ ------ ------
Total operating
expenses 48,608 50,247 48,021 98,855 86,521
------ ------ ------ ------ ------
Operating income
(loss) 9,855 (2,499) 44,819 7,356 59,514
Other income (expense):
Gain on purchased
options 21,193 - - 21,193 -
Interest and
other income
(expense), net (5,956) (12,094) (7,378) (18,050) (8,813)
------ ------- ------ ----- ------
Other income
(expense), net 15,237 (12,094) (7,378) 3,143 (8,813)
------ -------- ------- ----- -------
Income (loss)
before income
taxes and equity
in earnings of
unconsolidated
investees 25,092 (14,593) 37,441 10,499 50,701
Income tax
provision
(benefit) 4,054 (8,562) 7,614 (4,508) 9,419
----- ------ ----- ------ -----
Income (loss)
before equity in
earnings of
unconsolidated
investees 21,038 (6,031) 29,827 15,007 41,282
Equity in
earnings of
unconsolidated
investees, net
of taxes 3,133 1,245 1,330 4,378 1,874
----- ----- ----- ----- -----
Net income (loss) $24,171 $(4,786) $31,157 $19,385 $43,156
======= ======= ======= ======= =======
Net income (loss) per
share of class A and
class B common stock:
- Basic $0.27 $(0.06) $0.39 $0.22 $0.54
- Diluted $0.26 $(0.06) $0.37 $0.22 $0.51
Weighted-average
shares:
- Basic 90,873 83,749 79,412 87,311 79,188
- Diluted 98,412 83,749 83,365 89,110 83,182
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------- ------------------
Jun. Mar. Jun. Jun. Jun.
28, 29, 29, 28, 29,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
(Presented on a GAAP Basis)
Gross
margin $58,463 $47,748 $92,840 $106,211 $146,035
Operating
income
(loss) $9,855 $(2,499) $44,819 $7,356 $59,514
Net income
(loss)
per share
of class
A and
class B
common
stock:
-Basic $0.27 $(0.06) $0.39 $0.22 $0.54
-Diluted $0.26 $(0.06) $0.37 $0.22 $0.51
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------- ------------------
Jun. Mar. Jun. Jun. Jun.
28, 29, 29, 28, 29,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
(Presented on a non-GAAP Basis)
Gross
margin $67,128 $51,864 $101,021 $118,992 $166,719
Operating
income
(loss) $26,840 $11,536 $67,605 $38,376 $106,702
Net income
(loss) per
share of
class A and
class B
common stock:
-Basic $0.25 $0.05 $0.63 $0.31 $1.03
-Diluted $0.24 $0.05 $0.60 $0.30 $0.98
About SunPower's Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, SunPower uses non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude non-cash charges related to amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense, non-cash gain on purchased options related to the Company's convertible debt offering, and the related tax effects of these non-GAAP adjustments. The specific non-GAAP measures listed below are gross margin, operating income and net income per share. Management believes that each of these non-GAAP measures (gross margin, operating income and net income per share) are useful to investors by enabling them to better assess changes in each of these key elements of SunPower's results of operations across different reporting periods on a consistent basis, independent of these non-cash items. Thus, each of these non-GAAP financial measures provides investors with another method for assessing SunPower's operating results in a manner that is focused on its ongoing core operating performance, absent the effects of amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense and a gain on purchased options related to the Company's convertible debt offering. Management also uses these non-GAAP measures internally to assess the business and financial performance of current and historical results, for strategic decision making, forecasting future results and evaluating the company's current performance. Many of the analysts covering SunPower also use these non-GAAP measures in their analyses. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
o Non-GAAP gross margin. The use of this non-GAAP financial measure allows management to evaluate the gross margin of the company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it is an important component of management's internal performance measurement process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate the Company's revenue generation performance relative to the direct costs of revenue of SunPower's core businesses.
o Non-GAAP operating income. The use of this non-GAAP financial measure allows management to evaluate the operating results of the Company's core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets and interest expense. In addition, it is an important component of management's internal performance measurement process as it is used to assess the current and historical financial results of the business, for strategic decision making, preparing budgets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to understand the results of operations of the Company's core businesses and to compare results of operations on a more consistent basis against that of other companies in the industry.
o Non-GAAP net income per share. Management presents this non-GAAP financial measure to enable investors and analysts to assess the Company's operating results and trends across different reporting periods on a consistent basis, independent of non-cash items including amortization of intangible assets, stock-based compensation, impairment of long-lived assets, interest expense, a gain on purchased options related to the Company's convertible debt offering and the tax effects of these non-GAAP adjustments. In addition, investors and analysts can compare the Company's operating results on a more consistent basis against that of other companies in the industry.
Non-Cash Items
o Amortization of intangible assets. SunPower incurs amortization of intangible assets as a result of Cypress acquiring the company in November 2004, in which Cypress' cost of purchased technology, patents and tradenames is reflected in the Company's financial statements. In addition, SunPower incurs amortization of intangible assets as a result of acquisitions, which includes in-process research and development, purchased technology, patents and tradenames. SunPower excludes these items because these expenses are not reflective of ongoing operating results in the period incurred. These amounts arise from prior acquisitions and have no direct correlation to the operation of SunPower's core businesses.
o Stock-based compensation. Stock-based compensation relates primarily to SunPower stock awards such as stock options and restricted stock. Stock-based compensation is a non-cash expense that varies in amount from period to period and is dependent on market forces that are difficult to predict. As a result of this unpredictability, management excludes this item from its internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation provide investors with a basis to measure the company's core performance against the performance of other companies without the variability created by stock-based compensation.
o Impairment of long-lived assets. SunPower incurred an impairment of long-lived assets in the first quarter of fiscal 2008 totaling $5.5 million, which relates to the discontinuation of the Company's imaging detector product line and for the write-off of certain solar manufacturing equipment which became obsolete due to new processes. The costs associated with a $3.3 million write-off of certain solar product manufacturing equipment were recovered from the vendor in the third quarter of fiscal 2008. SunPower excluded this item because the expense is not reflective of its ongoing operating results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash expenses such as impairment of long-lived assets.
o Non-cash interest expense. Under FSP APB 14-1, SunPower separately accounts for the liability and equity components of its convertible debt in a manner that reflects interest expense equal to SunPower's non-convertible debt borrowing rate. As a result, SunPower incurs interest expense that is substantially higher than interest payable on its 1.25% senior convertible debentures and 0.75% senior convertible debentures. SunPower excludes non-cash interest expense because the expense is not reflective of its ongoing financial results in the period incurred. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash interest expense.
o Gain on purchased options related to the Company's convertible debt offering. In connection with the issuance of its 4.75% senior convertible debentures in May 2009, SunPower entered into certain convertible debenture hedge transactions with respect to its class A common stock intended to reduce the potential dilution that would occur upon conversion of the debentures. Under EITF 07-5, the convertible debenture hedge transactions consisting of call option instruments are deemed to be a mark-to-market derivative during the period in which the over-allotment option in favor of the debenture underwriters is unexercised. SunPower entered into the underwriting agreement on April 28, 2009 and the debenture underwriters exercised the over-allotment option on April 29, 2009. During the one-day period that the underwriters' over-allotment option was outstanding, SunPower's class A common stock price increased substantially. SunPower excluded the $21.2 million gain relating to the purchased options from its non-GAAP results because it was not realized in cash and it is not reflective of the company's ongoing financial results. Excluding this data provides investors with a basis to compare the company's performance against the performance of other companies without non-cash income from a gain on purchased options.
o Tax effect. This amount is used to present each of the amounts described above on an after-tax basis with the presentation of non-GAAP net income per share.
For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of GAAP results of operations measures to non-GAAP measures" set forth at the end of this release and which should be read together with the preceding financial statements prepared in accordance with GAAP.
SUNPOWER CORPORATION
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited)
(In thousands, except per share data)
STATEMENT OF OPERATIONS DATA:
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------- ----------------
Jun. Mar. Jun. Jun. Jun.
28, 29, 29, 28, 29,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
GAAP gross
margin $58,463 $47,748 $92,840 $106,211 $146,035
Amortization
of intangible
assets 2,795 2,793 2,907 5,588 6,119
Stock-based
compensation
expense 4,630 823 5,129 5,453 8,843
Impairment of
long-lived
assets - - - - 5,489
Non-cash
interest
expense 1,240 500 145 1,740 233
----- --- --- ----- ---
Non-GAAP gross
margin $67,128 $51,864 $101,021 $118,992 $166,719
======= ======= ======== ======== ========
GAAP operating
income (loss) $9,855 $(2,499) $44,819 $7,356 $59,514
Amortization
of intangible
assets 4,098 4,052 4,034 8,150 8,351
Stock-based
compensation
expense 11,647 9,483 18,607 21,130 33,115
Impairment of
long-lived
assets - - - - 5,489
Non-cash
interest
expense 1,240 500 145 1,740 233
----- --- --- ----- ---
Non-GAAP
operating
income $26,840 $11,536 $67,605 $38,376 $106,702
======= ======= ======= ======= ========
NET INCOME (LOSS) PER SHARE:
SIX MONTHS
THREE MONTHS ENDED ENDED
------------------------- --------------
Jun. Mar. Jun. Jun. Jun.
28, 29, 29, 28, 29,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Basic:
------
GAAP net
income (loss)
per share $0.27 $(0.06) $0.39 $0.22 $0.54
Reconciling items:
Amortization
of intangible
assets 0.04 0.05 0.05 0.09 0.10
Stock-based
compensation
expense 0.13 0.11 0.23 0.24 0.41
Impairment of
long-lived
assets - - - - 0.07
Non-cash
interest
expense 0.06 0.06 0.05 0.12 0.11
Gain on
purchased
options (0.23) - - (0.23) -
Tax effect (0.02) (0.11) (0.09) (0.13) (0.20)
----- ----- ----- ----- -----
Non-GAAP net
income per
share $0.25 $0.05 $0.63 $0.31 $1.03
===== ===== ===== ===== =====
Diluted:
--------
GAAP net
income (loss)
per share $0.26 $(0.06) $0.37 $0.22 $0.51
Reconciling items:
Amortization
of intangible
assets 0.04 0.05 0.05 0.09 0.10
Stock-based
compensation
expense 0.11 0.11 0.22 0.24 0.39
Impairment of
long-lived
assets - - - - 0.07
Non-cash
interest
expense 0.06 0.06 0.05 0.12 0.10
Gain on
purchased
options (0.21) - - (0.24) -
Tax effect (0.02) (0.11) (0.09) (0.13) (0.19)
----- ----- ----- ----- -----
Non-GAAP net
income per
share $0.24 $0.05 $0.60 $0.30 $0.98
===== ===== ===== ===== =====
Weighted-average
shares:
GAAP net income
(loss) per
share:
- Basic 90,873 83,749 79,412 87,311 79,188
- Diluted 98,412 83,749 83,365 89,110 83,182
Non-GAAP net
income per
share:
- Basic 90,873 83,749 79,412 87,311 79,188
- Diluted 98,412 85,579 83,365 89,110 83,182
The following supplemental data represents the individual charges and credits that are excluded from SunPower's non-GAAP financial measures for each period presented in the Condensed Consolidated Statements of Operations contained herein.
SUPPLEMENTAL DATA
(In thousands)
THREE MONTHS ENDED
June 28, 2009
-------------
Gross Margin Selling, Interest
Research general and other
and and income Income tax
Compo- develop- admini- (expense), provision
Systems nents ment strative net (benefit)
------- ------ -------- -------- ---------- ----------
Amortization
of
intangible
assets $1,841 $954 $- $1,303 $- $-
Stock-based
compensation
expense 1,474 3,156 1,482 5,535 - -
Non-cash
interest
expense 347 893 - - 4,675 -
Gain on
purchased
options - - - - (21,193) -
Tax effect - - - - - (1,873)
--- --- --- --- --- ------
$3,662 $5,003 $1,482 $6,838 $(16,518) $(1,873)
====== ====== ====== ====== ======== =======
March 29 2009
-------------
Gross Margin Selling, Interest
Research general and other
and and income Income tax
Compo- develop- admini- (expense), provision
Systems nents ment strative net (benefit)
------- ------ -------- -------- ---------- ----------
Amortization
of
intangible
assets $1,841 $952 $- $1,259 $- $-
Stock-based
compensation
expense 298 525 1,431 7,229 - -
Non-cash
interest
expense 230 270 - - 4,521 -
Tax effect - - - - - (9,547)
--- --- --- --- --- ------
$2,369 $1,747 $1,431 $8,488 $4,521 $(9,547)
====== ====== ====== ====== ====== =======
June 29, 2008
-------------
Gross Margin Selling, Interest
Research general and other
and and income Income tax
Compo- develop- admini- (expense), provision
Systems nents ment strative net (benefit)
------- ------ -------- -------- ---------- ----------
Amortization
of
intangible
assets $1,841 $1,066 $- $1,127 $- $-
Stock-based
compensation
expense 2,239 2,890 972 12,506 - -
Non-cash
interest
expense 65 80 - - 4,150 -
Tax effect - - - - - (7,543)
--- --- --- --- --- ------
$4,145 $4,036 $972 $13,633 $4,150 $(7,543)
====== ====== ==== ======= ====== =======
SIX MONTHS ENDED
June 28, 2009
-------------
Gross Margin Selling, Interest
Research general and other
and and income Income tax
Compo- develop- admini- (expense), provision
Systems nents ment strative net (benefit)
------- ------ -------- -------- ---------- ----------
Amortization
of
intangible
assets $3,682 $1,906 $- $2,562 $- $-
Stock-based
compensation
expense 1,772 3,681 2,913 12,764 - -
Non-cash
interest
expense 577 1,163 - - 9,196 -
Gain on
purchased
options - - - - (21,193) -
Tax effect - - - - - (11,420)
--- --- --- --- --- -------
$6,031 $6,750 $2,913 $15,326 $(11,997) $(11,420)
====== ====== ====== ======= ======== ========
June 29, 2008
-------------
Gross Margin Selling, Interest
Research general and other
and and income Income tax
Compo- develop- admini- (expense), provision
Systems nents ment strative net (benefit)
------- ------ -------- -------- ---------- ----------
Amortization
of
intangible
assets $4,009 $2,110 $- $2,232 $- $-
Stock-based
compensation
expense 4,750 4,093 1,783 22,489 - -
Impairment
of long-
lived assets 1,343 4,146 - - - -
Non-cash
interest
expense 101 132 - - 8,446 -
Tax effect - - - - - (16,254)
--- --- --- --- --- -------
$10,203 $10,481 $1,783 $24,721 $8,446 $(16,254)
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