CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Sales $68,567 $70,674 $187,671 $181,454
Cost of sales 45,474 44,074 126,355 117,168
Gross profit 23,093 26,600 61,316 64,286
Operating expenses:
Research and development 12,979 12,185 38,897 36,020
Sales and marketing 7,329 9,738 23,920 25,201
General and administrative 6,340 7,245 17,487 21,073
Restructuring charges 1,011 3,220 3,288 3,220
Impairment of intangible
assets 1,175 -- 1,175 --
Litigation damages -- -- -- 5,313
Total operating expenses 28,834 32,388 84,767 90,827
Loss from operations (5,741) (5,788) (23,451) (26,541)
Other (expense) income, net (2,261) (2,797) (7,351) (3,370)
Loss before income taxes (8,002) (8,585) (30,802) (29,911)
(Provision) benefit for income
taxes (19,436) 3,005 (11,000) 10,469
Net loss $(27,438) $(5,580) $(41,802) $(19,442)
Basic and diluted net loss per
share $(0.85) $(0.17) $(1.30) $(0.61)
Basic and diluted weighted-average
common shares outstanding 32,286 32,073 32,217 31,994
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
September 30, December 31,
2003 2002
ASSETS
Current Assets:
Cash and cash equivalents $33,004 $70,188
Marketable securities 103,376 102,159
Accounts receivable 53,967 43,885
Income tax receivable 14,089 14,720
Inventories 58,579 57,306
Other current assets 6,727 6,828
Deferred income tax assets, net -- 17,510
Total current assets 269,742 312,596
Property and equipment, net 43,426 41,178
Deposits and other 5,451 5,181
Goodwill and intangibles, net 87,051 86,601
Deferred debt issuance costs 3,266 4,091
Demonstration and customer service
equipment, net 4,250 6,086
Total assets $413,186 $455,733
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Trade accounts payable $21,023 $16,055
Other current liabilities 28,975 31,064
Current portion of capital
leases and senior borrowings 12,882 15,197
Accrued interest payable on
convertible subordinated notes 1,810 2,338
Total current liabilities 64,690 64,654
Long-term Liabilities:
Capital leases and senior
borrowings 7,506 10,665
Other long-term liabilities 697 694
Deferred income tax liability, net 3,777 8,663
Convertible subordinated notes
payable 187,718 187,718
Total long-term liabilities 199,698 207,740
Total liabilities 264,388 272,394
Stockholders' equity 148,798 183,339
Total liabilities and stockholders'
equity $413,186 $455,733
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Nine Months Ended September 30,
2003 2002
NET CASH USED IN
OPERATING ACTIVITIES (19,507) (20,173)
NET CASH (USED IN) PROVIDED
BY INVESTING ACTIVITIES (13,904) 28,677
NET CASH USED IN
FINANCING ACTIVITIES (4,905) (4,759)
EFFECT OF CURRENCY TRANSLATION ON
CASH (DECREASE) INCREASE
IN CASH AND CASH 1,132 1,553
EQUIVALENTS (37,184) 5,298
CASH AND EQUIVALENTS, beginning of
period 70,188 81,955
CASH AND EQUIVALENTS, end of period $33,004 $87,253