Attached files
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| 8-K - FORM 8-K - POLYCOM INC | d616379d8k.htm |
| EX-99.1 - EX-99.1 - POLYCOM INC | d616379dex991.htm |
Exhibit 99.2
POLYCOM, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2013 |
September 30, 2012 |
September 30, 2013 |
September 30, 2012 |
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| Revenues: |
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| Product revenues |
$ | 242,515 | $ | 247,058 | $ | 740,066 | $ | 780,611 | ||||||||
| Service revenues |
93,946 | 88,334 | 280,381 | 258,991 | ||||||||||||
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| Total revenues |
336,461 | 335,392 | 1,020,447 | 1,039,602 | ||||||||||||
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| Cost of revenues: |
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| Cost of product revenues |
102,830 | 102,235 | 309,994 | 316,863 | ||||||||||||
| Cost of service revenues |
38,587 | 36,799 | 114,714 | 106,123 | ||||||||||||
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| Total cost of revenues |
141,417 | 139,034 | 424,708 | 422,986 | ||||||||||||
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| Gross profit |
195,044 | 196,358 | 595,739 | 616,616 | ||||||||||||
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| Operating expenses: |
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| Sales and marketing |
107,292 | 117,853 | 325,663 | 348,041 | ||||||||||||
| Research and development |
54,220 | 53,997 | 164,782 | 153,425 | ||||||||||||
| General and administrative |
28,468 | 27,376 | 76,461 | 72,375 | ||||||||||||
| Amortization of purchased intangibles |
2,487 | 2,512 | 7,535 | 7,318 | ||||||||||||
| Restructuring costs |
24,887 | 6,171 | 34,639 | 21,829 | ||||||||||||
| Acquisition-related expenses |
39 | 6,334 | 3,411 | 11,793 | ||||||||||||
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| Total operating expenses |
217,393 | 214,243 | 612,491 | 614,781 | ||||||||||||
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| Operating income (loss) |
(22,349 | ) | (17,885 | ) | (16,752 | ) | 1,835 | |||||||||
| Interest expense |
(850 | ) | (287 | ) | (1,736 | ) | (470 | ) | ||||||||
| Interest income and other income (expense) |
(784 | ) | 57 | (1,041 | ) | (2,540 | ) | |||||||||
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| Interest and other income (expense), net |
(1,634 | ) | (230 | ) | (2,777 | ) | (3,010 | ) | ||||||||
| Loss from continuing operations before provision for income taxes |
(23,983 | ) | (18,115 | ) | (19,529 | ) | (1,175 | ) | ||||||||
| Provision for (benefit from) income taxes |
(5 | ) | (2,709 | ) | (2,963 | ) | 105 | |||||||||
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| Loss from continuing operations |
(23,978 | ) | (15,406 | ) | (16,566 | ) | (1,280 | ) | ||||||||
| Income from operations of discontinued operations, net of taxes |
— | 645 | — | 7,710 | ||||||||||||
| Gain from sale of discontinued operations, net of taxes |
— | — | 459 | — | ||||||||||||
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| Net income (loss) |
$ | (23,978 | ) | $ | (14,761 | ) | $ | (16,107 | ) | $ | 6,430 | |||||
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| Basic and diluted net income (loss) per share: |
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| Loss per share from continuing operations |
$ | (0.14 | ) | $ | (0.09 | ) | $ | (0.10 | ) | $ | (0.01 | ) | ||||
| Income per share from discontinued operations, net of taxes |
$ | — | $ | — | $ | — | $ | 0.04 | ||||||||
| Gain per share from sale of discontinued operations, net of taxes |
$ | — | $ | — | $ | — | $ | — | ||||||||
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| Basic net income (loss) per share |
$ | (0.14 | ) | $ | (0.08 | ) | $ | (0.09 | ) | $ | 0.04 | |||||
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| Number of shares used in computation of net income (loss) per share: |
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| Basic and diluted |
170,310 | 176,847 | 172,644 | 177,331 | ||||||||||||
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Note:
Earnings per share amounts for continuing operations, discontinued operations and net income, as presented above, are calculated individually and may not sum due to rounding differences.
As a result of the net loss from continuing operations for all periods presented, all potentially issuable common shares have been excluded from the diluted shares used in the computation of earnings per share as their effect is anti-dilutive.
The tax provision and net income for the three and nine months ended September 30, 2012 have been revised from previously issued financial statements to correct an error. These adjustments were not considered material to previously issued financial statements. However, because of the significance of these adjustments to the current period, the Company has revised the prior periods contained herein. The adjustments had no impact on income before provision for income taxes or net cash flows.
POLYCOM, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
| September 30, 2013 |
December 31, 2012 |
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| ASSETS |
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| Current assets |
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| Cash and cash equivalents |
$ | 712,694 | $ | 477,073 | ||||
| Short-term investments |
161,339 | 197,196 | ||||||
| Trade receivables, net |
175,223 | 194,654 | ||||||
| Inventories |
107,681 | 99,960 | ||||||
| Deferred taxes |
48,562 | 48,916 | ||||||
| Prepaid expenses and other current assets |
66,861 | 52,539 | ||||||
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| Total current assets |
1,272,360 | 1,070,338 | ||||||
| Property and equipment, net |
122,379 | 133,319 | ||||||
| Long-term investments |
79,776 | 50,333 | ||||||
| Goodwill and purchased intangibles |
605,411 | 608,802 | ||||||
| Deferred taxes |
26,702 | 28,406 | ||||||
| Other assets |
28,864 | 21,238 | ||||||
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| Total assets |
$ | 2,135,492 | $ | 1,912,436 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities |
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| Accounts payable |
$ | 91,136 | $ | 89,983 | ||||
| Accrued payroll and related liabilities |
33,878 | 39,469 | ||||||
| Taxes payable |
4,880 | 4,736 | ||||||
| Deferred revenue |
172,056 | 158,482 | ||||||
| Current portion of long term debt |
6,250 | — | ||||||
| Other accrued liabilities |
71,592 | 63,018 | ||||||
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| Total current liabilities |
379,792 | 355,688 | ||||||
| Non-current liabilities |
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| Deferred revenue |
88,112 | 91,061 | ||||||
| Long term debt |
243,750 | — | ||||||
| Taxes payable |
14,926 | 15,598 | ||||||
| Deferred taxes |
229 | 236 | ||||||
| Other non-current liabilities |
34,381 | 22,079 | ||||||
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| Total liabilities |
761,190 | 484,662 | ||||||
| Stockholders’ equity |
1,374,302 | 1,427,774 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 2,135,492 | $ | 1,912,436 | ||||
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The tax provision and net income for the year ended December 31, 2012 have been revised from previously issued financial statements to correct an error. These adjustments were not considered material to previously issued financial statements. However, because of the significance of these adjustments to the current period, the Company has revised the prior periods contained herein. The adjustments had no impact on income before provision for income taxes or net cash flows.
POLYCOM, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, 2013 |
September 30, 2012 |
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| Cash flows from operating activities: |
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| Net income (loss) |
$ | (16,107 | ) | $ | 6,430 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Gain from sale of discontinued operations, net of tax |
(459 | ) | — | |||||
| Depreciation and amortization |
49,654 | 45,592 | ||||||
| Amortization of purchased intangibles |
11,335 | 15,878 | ||||||
| Amortization of debt issue costs |
52 | — | ||||||
| Write-down of excess and obsolete inventories |
5,625 | 5,297 | ||||||
| Provision for doubtful accounts |
— | 800 | ||||||
| Stock-based compensation expense |
53,300 | 66,256 | ||||||
| Excess tax benefits from stock-based compensation |
(780 | ) | (9,587 | ) | ||||
| Loss on disposals of property and equipment |
3,658 | 3,502 | ||||||
| Changes in assets and liabilities, net of the effect of acquisitions: |
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| Trade receivables |
21,857 | 20,435 | ||||||
| Inventories |
(13,346 | ) | (13,858 | ) | ||||
| Deferred taxes |
2,058 | (12,947 | ) | |||||
| Prepaid expenses and other assets |
(18,915 | ) | 4,188 | |||||
| Accounts payable |
(1,118 | ) | (31,552 | ) | ||||
| Taxes payable |
(4,006 | ) | 1,032 | |||||
| Other accrued liabilities |
24,661 | 19,958 | ||||||
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| Net cash provided by operating activities |
117,469 | 121,424 | ||||||
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| Cash flows from investing activities: |
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| Purchases of property and equipment |
(41,793 | ) | (51,979 | ) | ||||
| Purchases of investments |
(200,945 | ) | (212,377 | ) | ||||
| Proceeds from sale of investments |
21,802 | 37,794 | ||||||
| Proceeds from maturities of investments |
185,634 | 178,162 | ||||||
| Net cash received from sale of discontinued operations |
556 | — | ||||||
| Net cash paid in purchase acquisitions |
(7,974 | ) | (4,583 | ) | ||||
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| Net cash used in investing activities |
(42,720 | ) | (52,983 | ) | ||||
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| Cash flows from financing activities: |
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| Proceeds from issuance of common stock under employee option and stock purchase plans |
23,326 | 24,362 | ||||||
| Proceeds from debt, net of debt issue costs |
247,582 | — | ||||||
| Repurchase of common stock |
(110,816 | ) | (62,073 | ) | ||||
| Excess tax benefits from stock-based compensation |
780 | 9,587 | ||||||
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| Net cash provided by (used in) financing activities |
160,872 | (28,124 | ) | |||||
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| Net increase in cash and cash equivalents |
235,621 | 40,317 | ||||||
| Cash and cash equivalents, beginning of period |
477,073 | 375,441 | ||||||
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| Cash and cash equivalents, end of period |
$ | 712,694 | $ | 415,758 | ||||
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