NORTH READING, Mass.--(BUSINESS WIRE)--Teradyne, Inc. (NYSE: TER) reported revenue of $548 million for the second quarter of 2012 of which $365 million was in Semiconductor Test, $112 million in LitePoint Wireless Test and $71 million in the Systems Test Group. On a non-GAAP basis, Teradyne’s income from continuing operations in the second quarter was $156 million, or $0.77 per diluted share, which excluded acquired intangible asset amortization, non-cash convertible debt interest, and included income taxes on a cash basis. GAAP income from continuing operations for the second quarter was $111 million, or $0.49 per diluted share.
Bookings in the second quarter of 2012 were $592 million of which $358 million were in Semiconductor Test, $189 million in LitePoint Wireless Test and $45 million in the Systems Test Group.
“Explosive growth in our LitePoint Wireless Test segment and continued strength for the UltraFLEX in high performance System-on-a-Chip test powered Teradyne’s results in the second quarter,” said Mike Bradley, President and CEO. “LitePoint delivered record orders and revenue as customers continue to embrace its time to market and economic advantages in the fast moving mobility market. After recording a very strong first half, our third quarter outlook reflects seasonally slower industry trends.”
Guidance for the third quarter of 2012 is for revenue of $420 million to $460 million, with non-GAAP income from continuing operations per diluted share of $0.41 to $0.51 and GAAP income from continuing operations per diluted share of $0.22 to $0.29. Non-GAAP guidance excludes acquired intangible asset amortization and non-cash convertible debt interest and includes income taxes on a cash basis.
Webcast
A conference call to discuss the second quarter of 2012 results, along with management's business outlook is scheduled at 10 a.m. EDT, Thursday, July 26, 2012. The call will be broadcast simultaneously over the Internet. Interested investors should access the webcast at www.teradyne.com and click on "Investors" at least five minutes before the call begins.
A replay will be available approximately two hours after the completion of the call. The replay number in the U.S. & Canada is 855-859-2056. The replay number outside the U.S. & Canada is 404-537-3406. The pass code for both numbers is 10287705. A replay will also be available on the Teradyne website at www.teradyne.com. Click on "Investors" for a link to the replay. The replay will be available via phone and website through August 11, 2012.
Non-GAAP Results
In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income from operations and non-GAAP income from continuing operations exclude acquired intangible asset amortization, non-cash convertible debt interest, fair value inventory step-up related to LitePoint, pension and post retirement actuarial gains and losses, and restructuring and other net, and include income taxes on a cash basis. GAAP requires that these items be included in determining income from operations and income from continuing operations. Non-GAAP income from operations, non-GAAP income from continuing operations, non-GAAP income from operations and non-GAAP income from continuing operations as a percentage of revenue, and non-GAAP income from continuing operations per share are non-GAAP measures presented to provide meaningful supplemental information regarding Teradyne's baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP gross margin excludes charges related to the fair value inventory step-up recorded as part of acquisition purchase accounting and pension and post retirement actuarial gains and losses. GAAP requires that these items be included in determining gross margin. Non-GAAP gross margin dollar amount and percentage are non-GAAP measures that management believes provide useful supplemental information for management and the investor. Management uses non-GAAP gross margin as a performance measure for Teradyne’s current core business and future outlook and for comparison with Teradyne’s business plan, historical gross margin results and the gross margin results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on "Investors" and then selecting the "GAAP to Non-GAAP Reconciliation" link. The non-GAAP financial measures discussed in this press release may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.
About Teradyne
Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment used to test semiconductors, wireless products, data storage and complex electronic systems which serve consumer, communications, industrial and government customers. In 2011, Teradyne had sales of $1.4 billion and currently employs approximately 3,400 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries.
Safe Harbor Statement
This release contains forward-looking statements regarding future business prospects, Teradyne’s results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as “will,” “anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management’s estimates of Teradyne’s future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and Quarterly Report on Form 10-Q for the period ended April 1, 2012. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management's views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne's views as of any date subsequent to the date of this release.
| TERADYNE, INC. REPORT FOR SECOND FISCAL QUARTER OF 2012 | |||||||||||||||||||||||||
| CONDENSED CONSOLIDATED OPERATING STATEMENTS | |||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||||
| July 1, 2012 | April 1, 2012 | July 3, 2011 | July 1, 2012 | July 3, 2011 | |||||||||||||||||||||
| Net Revenues | $ | 548,284 | $ | 396,668 | $ | 410,519 | $ | 944,952 | $ | 787,680 | |||||||||||||||
| Cost of Revenues (1) | 238,778 | 205,742 | 195,841 | 444,520 | 380,110 | ||||||||||||||||||||
| Gross Profit | 309,506 | 190,926 | 214,678 | 500,432 | 407,570 | ||||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||||
| Engineering and Development | 66,532 | 60,135 | 48,392 | 126,667 | 95,536 | ||||||||||||||||||||
| Selling and Administrative | 73,366 | 67,777 | 57,880 | 141,143 | 115,611 | ||||||||||||||||||||
| Acquired Intangible Asset Amortization | 18,429 | 18,429 | 7,291 | 36,858 | 14,582 | ||||||||||||||||||||
| Restructuring and Other, net (2) | (6,262 | ) | (1,825 | ) | 1,279 | (8,087 | ) | 1,692 | |||||||||||||||||
| Operating Expenses | 152,065 | 144,516 | 114,842 | 296,581 | 227,421 | ||||||||||||||||||||
| Income from Operations | 157,441 | 46,410 | 99,836 | 203,851 | 180,149 | ||||||||||||||||||||
| Interest & Other (3) | (5,449 | ) | (5,166 | ) | (3,913 | ) | (10,615 | ) | (8,802 | ) | |||||||||||||||
| Income from Continuing Operations Before Income Taxes | 151,992 | 41,244 | 95,923 | 193,236 | 171,347 | ||||||||||||||||||||
| Income Tax Provision | 40,605 | 7,680 | 7,839 | 48,285 | 13,325 | ||||||||||||||||||||
| Income from Continuing Operations | 111,387 | 33,564 | 88,084 | 144,951 | 158,022 | ||||||||||||||||||||
| Income from Discontinued Operations Before Income Taxes (4) | - | - | - | - | 1,436 | ||||||||||||||||||||
| Income Tax (Benefit) | - | - | - | - | (267 | ) | |||||||||||||||||||
| Income from Discontinued Operations | - | - | - | - | 1,703 | ||||||||||||||||||||
| (Loss) / Gain on Disposal of Discontinued Operations (net of income tax provision of $0 and $4,578, respectively) | - | - | (832 | ) | - | 24,371 | |||||||||||||||||||
| Net Income | $ | 111,387 | $ | 33,564 | $ | 87,252 | $ | 144,951 | $ | 184,096 | |||||||||||||||
|
Income per Common Share from Continuing Operations: |
|||||||||||||||||||||||||
| Basic | $ | 0.60 | $ | 0.18 | $ | 0.48 | $ | 0.78 | $ | 0.85 | |||||||||||||||
| Diluted | $ | 0.49 | $ | 0.15 | $ | 0.38 | $ | 0.63 | $ | 0.68 | |||||||||||||||
|
Net Income per Common Share: |
|||||||||||||||||||||||||
| Basic | $ | 0.60 | $ | 0.18 | $ | 0.47 | $ | 0.78 | $ | 0.99 | |||||||||||||||
| Diluted | $ | 0.49 | $ | 0.15 | $ | 0.38 | $ | 0.63 | $ | 0.80 | |||||||||||||||
| Weighted Average Common Shares - Basic | 186,573 | 185,838 | 185,367 | 186,205 | 185,044 | ||||||||||||||||||||
| Weighted Average Common Shares - Diluted (5) | 229,646 | 231,153 | 230,452 | 230,399 | 231,266 | ||||||||||||||||||||
| Net Orders | $ | 591,703 | $ | 458,082 | $ | 333,170 | $ | 1,049,785 | $ | 768,247 | |||||||||||||||
| (1) | Cost of Revenues includes: | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| July 1, 2012 | April 1, 2012 | July 3, 2011 | July 1, 2012 | July 3, 2011 | |||||||||||||||||||||
| Provision for Excess and Obsolete Inventory | $ | 9,353 | $ | 1,574 | $ | 1,716 | $ | 10,927 | $ | 6,343 | |||||||||||||||
| Inventory Step-Up | 1,218 | 4,871 | - | 6,089 | - | ||||||||||||||||||||
| Sale of Previously Written Down Inventory | - | (1,272 | ) | (764 | ) | (1,272 | ) | (3,786 | ) | ||||||||||||||||
| $ | 10,571 | $ | 5,173 | $ | 952 | $ | 15,744 | $ | 2,557 | ||||||||||||||||
| (2) | Restructuring and Other, net consists of: | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| July 1, 2012 | April 1, 2012 | July 3, 2011 | July 1, 2012 | July 3, 2011 | |||||||||||||||||||||
| Contingent Consideration Fair Value Adjustment | $ | (6,548 | ) | $ | (1,825 | ) | $ | - | $ | (8,373 | ) | $ | - | ||||||||||||
| Employee Severance | 286 | - | 344 | 286 | 1,188 | ||||||||||||||||||||
| Non-U.S. Pension Settlement | - | - | 935 | - | 935 | ||||||||||||||||||||
| Facility Related | - | - | - | - | (431 | ) | |||||||||||||||||||
| $ | (6,262 | ) | $ | (1,825 | ) | $ | 1,279 | $ | (8,087 | ) | $ | 1,692 | |||||||||||||
| (3) | Interest & Other includes: | Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| July 1, 2012 | April 1, 2012 | July 3, 2011 | July 1, 2012 | July 3, 2011 | |||||||||||||||||||||
| Non-Cash Convertible Debt Interest | $ | 3,389 | $ | 3,275 | $ | 2,957 | 6,664 | $ | 5,815 | ||||||||||||||||
| (4) | On March 21, 2011, Teradyne completed the sale of its Diagnostic Solutions business unit to SPX Corporation for a gain of $24.4 million. The results for the discontinued business unit have been included within discontinued operations for all periods presented. | ||||||||||||||||||||||||
| (5) | Under GAAP, when calculating diluted earnings per share, convertible debt must be assumed to have converted if the effect on EPS would be dilutive. Diluted shares assume the conversion of the convertible debt as the effect would be dilutive. Accordingly, for the quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, and six months ended July 1, 2012 and July 3, 2011, 22.3 million, 23.0 million, 22.7 million, 22.7 million and 23.0 million shares, respectively, have been included in diluted shares. | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||
| July 1, 2012 | December 31, 2011 | |||||||||
| Assets | ||||||||||
| Cash and Cash Equivalents | $ | 589,056 | $ | 573,736 | ||||||
| Marketable Securities | 105,947 | 96,502 | ||||||||
| Accounts Receivable | 346,124 | 129,330 | ||||||||
| Inventories (1) | 137,898 | 160,063 | ||||||||
| Deferred Tax Assets | 56,888 | 53,948 | ||||||||
| Prepayments and Other Current Assets | 80,895 | 86,308 | ||||||||
| Total Current Assets | 1,316,808 | 1,099,887 | ||||||||
| Net Property, Plant and Equipment | 248,000 | 232,207 | ||||||||
| Long-Term Marketable Securities | 133,750 | 84,407 | ||||||||
| Retirement Plan Assets | 7,182 | 8,840 | ||||||||
| Intangible Assets | 356,117 | 392,975 | ||||||||
| Goodwill | 352,778 | 352,778 | ||||||||
| Other Assets | 20,035 | 17,545 | ||||||||
| Total Assets | $ | 2,434,670 | $ | 2,188,639 | ||||||
| Liabilities | ||||||||||
| Accounts Payable | $ | 117,343 | $ | 69,842 | ||||||
| Accrued Employees' Compensation and Withholdings | 80,118 | 90,427 | ||||||||
| Deferred Revenue and Customer Advances | 83,710 | 78,670 | ||||||||
| Contingent Consideration | 54,662 | 68,892 | ||||||||
| Other Accrued Liabilities | 64,298 | 62,420 | ||||||||
| Income Taxes Payable | 23,218 | 860 | ||||||||
| Current Debt | 2,522 | 2,573 | ||||||||
| Total Current Liabilities | 425,871 | 373,684 | ||||||||
| Long-Term Deferred Revenue and Customer Advances | 22,303 | 33,541 | ||||||||
| Retirement Plan Liabilities | 77,295 | 76,638 | ||||||||
| Deferred Tax Liabilities | 37,915 | 16,049 | ||||||||
| Other Long-Term Liabilities | 20,573 | 23,711 | ||||||||
| Long-Term Debt | 165,283 | 159,956 | ||||||||
| Total Liabilities | 749,240 | 683,579 | ||||||||
| Shareholders' Equity | 1,685,430 | 1,505,060 | ||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,434,670 | $ | 2,188,639 | ||||||
| (1) | As of December 31, 2011, Inventories included approximately $6.1 million of LitePoint inventory step-up. | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) | |||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||
| July 1, 2012 | July 3, 2011 | July 1, 2012 | July 3, 2011 | ||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||
| Net income | $ | 111,387 | $ | 87,252 | $ | 144,951 | $ | 184,096 | |||||||||||||
| Less: Income from discontinued operations | - | - | - | 1,703 | |||||||||||||||||
| Less: (Loss) Gain on disposal of discontinued operations | - | (832 | ) | - | 24,371 | ||||||||||||||||
| Income from continuing operations | 111,387 | 88,084 | 144,951 | 158,022 | |||||||||||||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||||||||||||||||
| Depreciation | 13,290 | 12,588 | 25,578 | 25,645 | |||||||||||||||||
| Amortization | 21,929 | 10,463 | 43,744 | 20,816 | |||||||||||||||||
| Stock-based compensation | 10,630 | 7,218 | 21,396 | 14,682 | |||||||||||||||||
| Provision for excess and obsolete inventory | 9,353 | 1,716 | 10,927 | 6,343 | |||||||||||||||||
| Deferred taxes | 8,238 | - | 15,937 | - | |||||||||||||||||
| Inventory step-up | 1,218 | - | 6,089 | - | |||||||||||||||||
| Contingent consideration adjustment | (6,548 | ) | - | (8,373 | ) | - | |||||||||||||||
| Tax benefit related to stock options and restricted stock units | (7,600 | ) | (3,717 | ) | (7,600 | ) | (3,717 | ) | |||||||||||||
| Other | 16 | 804 | (471 | ) | 1,422 | ||||||||||||||||
| Changes in operating assets and liabilities, net of businesses acquired and sold: | |||||||||||||||||||||
| Accounts receivable | (124,577 | ) | (21,569 | ) | (216,794 | ) | (39,067 | ) | |||||||||||||
| Inventories | (2,190 | ) | (4,297 | ) | 21,446 | (15,006 | ) | ||||||||||||||
| Other assets | 5,922 | (6,894 | ) | 7,807 | (9,158 | ) | |||||||||||||||
| Deferred revenue and customer advances | (4,494 | ) | (3,786 | ) | (6,198 | ) | (28,339 | ) | |||||||||||||
| Accounts payable and accrued expenses | 36,673 | 20,018 | 27,414 | (5,996 | ) | ||||||||||||||||
| Retirement plan contributions | (1,489 | ) | (4,069 | ) | (2,550 | ) | (5,245 | ) | |||||||||||||
| Accrued income taxes | 30,334 | 5,406 | 29,958 | 5,406 | |||||||||||||||||
| Net cash provided by continuing operations | 102,092 | 101,965 | 113,261 | 125,808 | |||||||||||||||||
| Net cash used for discontinued operations | - | - | - | (4,225 | ) | ||||||||||||||||
| Net cash provided by operating activities | 102,092 | 101,965 | 113,261 | 121,583 | |||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||
| Purchases of property, plant and equipment | (30,730 | ) | (22,336 | ) | (57,804 | ) | (44,467 | ) | |||||||||||||
| Purchases of available-for-sale marketable securities | (76,676 | ) | (287,252 | ) | (156,771 | ) | (498,541 | ) | |||||||||||||
| Proceeds from sales and maturities of available-for-sale marketable securities | 46,315 | 232,029 | 99,120 | 420,477 | |||||||||||||||||
| Net cash used for continuing operations | (61,091 | ) | (77,559 | ) | (115,455 | ) | (122,531 | ) | |||||||||||||
| Net cash provided by discontinued operations | - | 32 | - | 39,062 | |||||||||||||||||
| Net cash used for investing activities | (61,091 | ) | (77,527 | ) | (115,455 | ) | (83,469 | ) | |||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||
| Issuance of common stock | 7,059 | 6,976 | 16,984 | 17,052 | |||||||||||||||||
| Tax benefit related to stock options and restricted stock units | 7,600 | 3,717 | 7,600 | 3,717 | |||||||||||||||||
| Payments of long-term debt | - | - | (1,246 | ) | (1,222 | ) | |||||||||||||||
| Payments of contingent consideration | - | - | (5,824 | ) | - | ||||||||||||||||
| Net cash provided by financing activities | 14,659 | 10,693 | 17,514 | 19,547 | |||||||||||||||||
| Increase in cash and cash equivalents | 55,660 | 35,131 | 15,320 | 57,661 | |||||||||||||||||
| Cash and cash equivalents at beginning of period | 533,396 | 420,267 | 573,736 | 397,737 | |||||||||||||||||
| Cash and cash equivalents at end of period | $ | 589,056 | $ | 455,398 | $ | 589,056 | $ | 455,398 | |||||||||||||
| GAAP to Non-GAAP Earnings Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| July 1, 2012 |
% of Net |
April 1, 2012 |
% of Net |
July 3, 2011 |
% of Net |
||||||||||||||||||||||||||||||||||||||||||||
| Net Revenues | $ | 548.3 | $ | 396.7 | $ | 410.5 | |||||||||||||||||||||||||||||||||||||||||||
| Gross Profit - GAAP | $ | 309.5 | 56.4 | % | $ | 190.9 | 48.1 | % | $ | 214.7 | 52.3 | % | |||||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 1.2 | 0.2 | % | 4.9 | 1.2 | % | - | - | |||||||||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 0.8 | 0.1 | % | - | - | 1.1 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Gross Profit - Non-GAAP | $ | 311.5 | 56.8 | % | $ | 195.8 | 49.4 | % | $ | 215.8 | 52.6 | % | |||||||||||||||||||||||||||||||||||||
| Income from Operations - GAAP | $ | 157.4 | 28.7 | % | $ | 46.4 | 11.7 | % | $ | 99.8 | 24.3 | % | |||||||||||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 18.4 | 3.4 | % | 18.4 | 4.6 | % | 7.3 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 1.2 | 0.2 | % | 4.9 | 1.2 | % | - | - | |||||||||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 3.1 | 0.6 | % | - | - | 4.2 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other, net (2) | (6.3 | ) | -1.1 | % | (1.8 | ) | -0.5 | % | 1.3 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||
| Income from Operations - non-GAAP | $ | 173.8 | 31.7 | % | $ | 67.9 | 17.1 | % | $ | 112.6 | 27.4 | % | |||||||||||||||||||||||||||||||||||||
|
Income |
Income |
Income |
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| July 1, 2012 |
% of Net |
Basic | Diluted | April 1, 2012 |
% of Net |
Basic | Diluted | July 3, 2011 |
% of Net |
Basic | Diluted | ||||||||||||||||||||||||||||||||||||||
| Income from Continuing Operations - GAAP | $ | 111.4 | 20.3 | % | $ | 0.60 | $ | 0.49 | $ | 33.6 | 8.5 | % | $ | 0.18 | $ | 0.15 | $ | 88.1 | 21.5 | % | $ | 0.48 | $ | 0.38 | |||||||||||||||||||||||||
| Income Tax adjustment (3) | 25.1 | 4.6 | % | 0.13 | 0.12 | 1.8 | 0.5 | % | 0.01 | 0.01 | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 18.4 | 3.4 | % | 0.10 | 0.09 | 18.4 | 4.6 | % | 0.10 | 0.09 | 7.3 | 1.8 | % | 0.04 | 0.04 | ||||||||||||||||||||||||||||||||||
| Interest and other (4) | 3.4 | 0.6 | % | 0.02 | 0.02 | 3.3 | 0.8 | % | 0.02 | 0.02 | 3.0 | 0.7 | % | 0.02 | 0.01 | ||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 3.1 | 0.6 | % | 0.02 | 0.01 | - | - | - | - | 4.2 | 1.0 | % | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 1.2 | 0.2 | % | 0.01 | 0.01 | 4.9 | 1.2 | % | 0.03 | 0.02 | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Restructuring and other, net (2) | (6.3 | ) | -1.1 | % | (0.03 | ) | (0.03 | ) | (1.8 | ) | -0.5 | % | (0.01 | ) | (0.01 | ) | 1.3 | 0.3 | % | 0.01 | 0.01 | ||||||||||||||||||||||||||||
| Convertible share adjustment (5) | - | - | - | 0.06 | - | - | - | 0.02 | - | - | - | 0.05 | |||||||||||||||||||||||||||||||||||||
| Income from Continuing Operations - non-GAAP | $ | 156.3 | 28.5 | % | $ | 0.84 | $ | 0.77 | $ | 60.2 | 15.2 | % | $ | 0.32 | $ | 0.30 | $ | 103.9 | 25.3 | % | $ | 0.56 | $ | 0.51 | |||||||||||||||||||||||||
| GAAP and Non-GAAP Weighted Average Common Shares - Basic | 186.6 | 185.8 | 185.4 | ||||||||||||||||||||||||||||||||||||||||||||||
| GAAP Weighted Average Common Shares - Diluted | 229.6 | 231.2 | 230.5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Exclude dilutive shares from convertible note | (22.3 | ) | (23.0 | ) | (22.7 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Weighted Average Common Shares - Diluted (5) | 207.3 | 208.2 | 207.8 | ||||||||||||||||||||||||||||||||||||||||||||||
| (1) | Actuarial loss recognized under GAAP in accordance with the Company's mark-to-market pension accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (2) |
Restructuring and other, net consists of: |
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| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| July 1, 2012 | April 1, 2012 | July 3, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||
| Contingent Consideration Fair Value Adjustment | $ | (6.5 | ) | $ | (1.8 | ) | $ | - | |||||||||||||||||||||||||||||||||||||||||
| Employee Severance | 0.3 | - | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. Pension Settlement | - | - | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||
| $ | (6.3 | ) | $ | (1.8 | ) | $ | 1.3 | ||||||||||||||||||||||||||||||||||||||||||
| (3) | For the quarters ended July 1, 2012 and April 1, 2012, adjustment to record income tax provision on a cash basis. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (4) | For the quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, Interest and Other included non-cash convertible debt interest. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | For the quarters ended July 1, 2012, April 1, 2012 and July 3, 2011, the calculation of non-GAAP diluted earnings per share gives benefit to the Company's call option on its stock for 34.7 million shares at $5.48. As a result, 17.3 million, 18.3 million and 17.9 million shares, respectively, have been included in non-GAAP diluted shares and net interest expense of $2.3 million has been added back to non-GAAP net income for the non-GAAP diluted earnings per share calculation. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| July 1, 2012 |
% of Net |
July 3, 2011 |
% of Net |
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| Net Revenues | $ | 945.0 | $ | 787.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Gross Profit - GAAP | $ | 500.4 | 53.0 | % | $ | 407.6 | 51.7 | % | |||||||||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 6.1 | 0.6 | % | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 0.8 | 0.1 | % | 1.1 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||
| Gross Profit - Non-GAAP | $ | 507.3 | 53.7 | % | $ | 408.7 | 51.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Income from Operations - GAAP | $ | 203.9 | 21.6 | % | $ | 180.1 | 22.9 | % | |||||||||||||||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 36.9 | 3.9 | % | 14.6 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 6.1 | 0.6 | % | - | - | ||||||||||||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 3.1 | 0.3 | % | 4.2 | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other, net (2) | (8.1 | ) | -0.9 | % | 1.7 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||||
| Income from Operations - non-GAAP | $ | 241.9 | 25.6 | % | $ | 200.6 | 25.5 | % | |||||||||||||||||||||||||||||||||||||||||
|
Income |
Income |
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| July 1, 2012 |
% of Net |
Basic | Diluted | July 3, 2011 |
% of Net |
Basic | Diluted | ||||||||||||||||||||||||||||||||||||||||||
| Income from Continuing Operations - GAAP | $ | 145.0 | 15.3 | % | $ | 0.78 | $ | 0.63 | $ | 158.0 | 20.1 | % | $ | 0.85 | $ | 0.68 | |||||||||||||||||||||||||||||||||
| Acquired intangible asset amortization | 36.9 | 3.9 | % | 0.20 | 0.18 | 14.6 | 1.9 | % | 0.08 | 0.07 | |||||||||||||||||||||||||||||||||||||||
| Income Tax adjustment (3) | 26.9 | 2.8 | % | 0.14 | 0.13 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
| Interest and other (4) | 6.7 | 0.7 | % | 0.04 | 0.03 | 5.8 | 0.7 | % | 0.03 | 0.03 | |||||||||||||||||||||||||||||||||||||||
| Inventory Step-Up | 6.1 | 0.6 | % | 0.03 | 0.03 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
| Pension Mark-to-Market adjustments (1) | 3.1 | 0.3 | % | 0.02 | 0.01 | 4.2 | 0.5 | % | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||||||
| Restructuring and other, net (2) | (8.1 | ) | -0.9 | % | (0.04 | ) | (0.04 | ) | 1.7 | 0.2 | % | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||||
| Convertible share adjustment (5) | - | - | - | 0.10 | - | - | - | 0.10 | |||||||||||||||||||||||||||||||||||||||||
| Income from Continuing Operations - non-GAAP | $ | 216.6 | 22.9 | % | $ | 1.16 | $ | 1.07 | $ | 184.3 | 23.4 | % | $ | 1.00 | $ | 0.91 | |||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP Weighted Average Common Shares - Basic | 186.2 | 185.0 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP Weighted Average Common Shares - Diluted | 230.4 | 231.3 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exclude dilutive shares from convertible note | (22.7 | ) | (23.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP Weighted Average Common Shares - Diluted (5) | 207.7 | 208.3 | |||||||||||||||||||||||||||||||||||||||||||||||
| (1) | Actuarial loss recognized under GAAP in accordance with the Company's mark-to-market pension accounting. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Restructuring and other, net consists of: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| July 1, 2012 | July 3, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Contingent Consideration Fair Value Adjustment | $ | (8.4 | ) | $ | - | ||||||||||||||||||||||||||||||||||||||||||||
| Employee Severance | 0.3 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-U.S. Pension Settlement | - | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||
| Facility Related | - | (0.4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| $ | (8.1 | ) | $ | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||
| (3) | For the six months ended July 1, 2012 adjustment to record income tax provision on a cash basis. | ||||||||||||||||||||||||||||||||||||||||||||||||
| (4) |
For the six months ended July 1, 2012 and July 3, 2011, Interest and Other included non-cash convertible debt interest. |
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| (5) | For the six months ended July 1, 2012 and July 3, 2011, the calculation of non-GAAP diluted earnings per share gives benefit to the Company's call option on its stock for 34.7 million shares at $5.48. As a result, 17.8 million and 18.4 million shares, respectively, have been included in non-GAAP diluted shares and net interest expense of approximately $4.7 million has been added back to non-GAAP net income for the non-GAAP diluted earnings per share calculation. | ||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP to Non-GAAP Reconciliation of Third Quarter 2012 guidance: | |||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP third quarter revenue guidance: | $420 million | to | $460 million | ||||||||||||||||||||||||||||||||||||||||||||||
| GAAP income from continuing operations per diluted share | $ | 0.22 | $ | 0.29 | |||||||||||||||||||||||||||||||||||||||||||||
| Exclude acquired intangible asset amortization | 0.09 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exclude non-cash convertible debt interest | 0.02 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||
| Include income tax adjustment | 0.05 | 0.05 | |||||||||||||||||||||||||||||||||||||||||||||||
| Exclude dilutive shares from convertible note | 0.03 | 0.06 | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP income from continuing operations per diluted share | $ | 0.41 | $ | 0.51 | |||||||||||||||||||||||||||||||||||||||||||||
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