3Com Financial Highlights
Dollars and shares in thousands, except per share data:
| |
|
|
1998 |
|
1999 |
|
2000 |
| |
|
|
5/31/98 |
|
5/28/99 |
|
6/2/00 |
| |
| Operating Results |
|
|
|
|
|
|
| |
Sales
|
$ |
5,156,016 |
$ |
5,202,253 |
$ |
4,333,942 |
| |
Cost of sales |
|
2,910,267 |
|
2,900,169 |
|
2,484,883 |
| |
Gross margin |
|
2,245,749 |
|
2,302,084 |
|
1,849,059 |
| |
Operating expenses |
|
2,157,415 |
|
1,835,728 |
|
1,830,258 |
| |
Operating income |
|
88,334 |
|
466,356 |
|
18,801 |
| |
Net income from continuing operations |
|
23,046 |
|
364,945 |
|
615,563 |
| |
Net income from discontinued operations |
|
7,168 |
|
38,929 |
|
58,740 |
| |
Net income |
$ |
30,214 |
$ |
403,874 |
$ |
674,303 |
| |
| Shares used in computing EPS: |
|
|
|
|
|
| |
Basic |
|
351,154 |
|
360,424 |
|
348,314 |
| |
Diluted |
|
365,093 |
|
369,361 |
|
357,883 |
| |
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
| |
Continuing operations |
$ |
0.07 |
$ |
1.01 |
$ |
1.77 |
| |
Discontinued operations |
$ |
0.02 |
$ |
0.11 |
$ |
0.17 |
| |
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
| |
Continuing operations |
$ |
0.06 |
$ |
0.99 |
$ |
1.72 |
| |
Discontinued operations |
$ |
0.02 |
$ |
0.10 |
$ |
0.16 |
| |
|
|
|
|
|
|
|
| Pro forma results |
|
|
|
|
|
|
| |
(excluding non-recurring items) |
|
|
|
|
|
| |
Pro forma net income |
$ |
238,892 |
$ |
359,227 |
$ |
122,992 |
| |
Pro forma EPS |
$ |
0.65 |
$ |
0.97 |
$ |
0.34 |
|
| Financial Position |
|
|
|
|
|
|
| |
Total assets |
$ |
4,048,887 |
$ |
4,412,275 |
$ |
6,492,954 |
| |
Long-term debt |
|
35,878 |
|
29,723 |
|
14,740 |
| |
Stockholders’ equity |
|
2,807,495 |
|
3,196,455 |
|
4,043,064 |
|
| Other Data |
|
|
|
|
|
|
| |
Return on controllable assets (ROCA) |
|
16.6% |
|
28.1% |
|
13.6% |
| |
Common stockholders of record |
|
7,100 |
|
7,183 |
|
5,941 |
| |
Employees |
|
12,610 |
|
12,543 |
|
10,597 |
Net income for fiscal 1998 included a pre-tax charge of approximately $8.4 million related to purchased in-process technology associated with the purchase of Lanworks Technologies, Inc., and a net pre-tax charge of approximately $253.7 million for merger-related costs and disposition of real estate. Net income for fiscal 1998 also excludes Palm as a discontinued operation.
Net income for fiscal 1999 included a net pre-tax charge of approximately $10.6 million for purchased in-process technology associated with the purchases of NBX Corporation, and certain assets of ICS Networking, Inc., a net pre-tax credit of approximately $17.6 million primarily associated with past merger activities and a net gain on land and facilities of $4.2 million and a loss on investments of $2.6 million. Net income for fiscal 1999 also excludes Palm as a discontinued operation.
Net income for fiscal 2000 included a net pre-tax charge of approximately $13.5 million for purchased in-process technology, a net pre-tax credit of approximately $2.3 million primarily associated with past merger activities, a net pre-tax gain on the sale of land and facilities of
$25.5 million, a net pre-tax charge of $68.9 million for business realignment costs associated with our change in strategy and the Palm
separation, and a net pre-tax gain on sale of investments of $838.8 million.
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