CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, September 30, December 31,
2005 2004 2005 2005 2004
Sales $80,387 $84,811 $78,756 $325,482 $380,537
Cost of sales 50,196 71,536 49,834 208,401 265,911
Gross profit 30,191 13,275 28,922 117,081 114,626
Operating
expenses:
Research and
development 9,635 11,987 9,610 39,720 49,004
Selling,
general and
administrative 13,671 12,305 13,421 53,631 54,174
Amortization of
intangible
assets 481 538 504 2,050 3,925
Restructuring
charges 166 3,670 210 2,706 3,912
Litigation
settlement -- -- 3,000 3,000 --
Demonstration
equipment
charge -- 3,752 -- -- 3,752
Impairment of
intangible
assets -- 3,326 -- -- 3,326
Total
operating
expenses 23,953 35,578 26,745 101,107 118,093
Income (loss)
from operations 6,238 (22,303) 2,177 15,974 (3,467)
Other income
(expense), net 123 (1,690) (4,796) (7,479) (7,256)
Income (loss)
from continuing
operations before
income taxes 6,361 (23,993) (2,619) 8,495 (10,723)
Provision
(benefit) for
income taxes (1,330) 648 (1,584) (4,873) (3,947)
Income (loss)
from continuing
operations 5,031 (23,345) (4,203) 3,622 (14,670)
Gain on sale of
discontinued
assets 5,210 -- -- 7,855 --
Results of
discontinued
operations (216) 340 312 1,340 1,923
Provision for
income taxes -- -- -- -- --
Income from
discontinued
operations 4,994 340 312 9,195 1,923
Net income (loss) $10,025 $(23,005) $(3,891) $12,817 $(12,747)
Net income (loss)
per basic share
Income (loss)
from continuing
operations $0.11 $(0.71) $(0.11) $0.10 $(0.45)
Income from
discontinued
operations $0.11 $0.01 $0.01 $0.25 $0.06
Basic earnings
(loss) per share $0.23 $(0.70) $(0.10) $0.35 $(0.39)
Net income (loss)
per diluted share
Income (loss)
from continuing
operations $0.11 $(0.71) $(0.11) $0.10 $(0.45)
Income from
discontinued
operations $0.11 $0.01 $0.01 $0.25 $0.06
Diluted earnings
(loss) per share $0.22 $(0.70) $(0.10) $0.34 $(0.39)
Basic
weighted-average
common shares
outstanding 44,416 32,698 38,366 37,084 32,649
Diluted
weighted-average
common shares
outstanding 44,902 32,698 38,366 37,434 32,649
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
December 31, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $52,874 $38,404
Marketable securities 6,811 69,578
Accounts receivable, net 68,992 72,053
Inventories, net 56,199 73,224
Other current assets 6,773 6,140
Total current assets 191,649 259,399
Property and equipment, net 39,294 44,746
Deposits and other 3,808 6,468
Goodwill and intangibles, net 69,843 80,308
Customer service equipment, net 2,407 2,968
Deferred debt issuance costs, net -- 2,086
Deferred income tax assets, net 3,116 --
Total assets $310,117 $395,975
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $22,028 $17,683
Other accrued expenses 23,977 28,615
Current portion of capital leases and
senior borrowings 1,216 3,726
Accrued interest payable on
convertible subordinated notes -- 2,460
Total current liabilities 47,221 52,484
Long-term liabilities:
Capital leases and senior borrowings 2,974 4,679
Deferred income tax liabilities, net -- 3,709
Convertible subordinated notes payable -- 187,718
Other long-term liabilities 2,492 2,407
Total long-term liabilities 5,466 198,513
Total liabilities 52,687 250,997
Stockholders' equity 257,430 144,978
Total liabilities and stockholders' equity $310,117 $395,975
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Years Ended December 31,
2005 2004
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $36,051 $(11,378)
NET CASH PROVIDED BY INVESTING ACTIVITIES 67,032 12,329
NET CASH USED IN FINANCING ACTIVITIES (85,972) (5,191)
EFFECT OF CURRENCY TRANSLATION ON CASH (2,641) 1,122
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 14,470 (3,118)
CASH AND EQUIVALENTS, beginning of period 38,404 41,522
CASH AND EQUIVALENTS, end of period $52,874 $38,404