Ikanos Communications Reports Results for Third Quarter 2008 (Revenue down 13%)

 


                           IKANOS COMMUNICATIONS, INC.
            Unaudited Condensed Consolidated Statements of Operations
                      (In thousands, except per share data)

                                      Three Months Ended   Nine Months Ended
                                       Sept. 28, Sept. 30, Sept. 28, Sept. 30,
                                          2008      2007      2008      2007

    Revenue                             $24,178   $27,275   $83,730   $77,601
    Cost of revenue                      14,212    17,190    48,265    47,060
         Gross margin                     9,966    10,085    35,465    30,541
    Operating expenses:
      Research and development           10,282    13,908    33,516    38,940
      Selling, general and
       administrative                     8,142     6,832    20,282    20,973
      Restructuring charges                 -       3,468       -       3,468
      Asset impairments                  12,496       -      12,496       -
         Total operating expenses        30,920    24,208    66,294    63,381
    Loss from operations                (20,954)  (14,123)  (30,829)  (32,840)
      Investment impairment              (6,166)      -      (6,166)      -
      Interest income, net                  427     1,226     1,669     3,851
    Loss before income taxes            (26,693)  (12,897)  (35,326)  (28,989)
      Provision for income taxes            (27)       70        97       224
    Net loss                           $(26,666) $(12,967) $(35,423) $(29,213)

    Basic and diluted net loss per
     share                               $(0.93)   $(0.45)   $(1.22)   $(1.03)
    Weighted average number of shares    28,565    28,711    29,139    28,377



                           IKANOS COMMUNICATIONS, INC.
     Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of
                                    Operations
                      (In thousands, except per share data)

                                                   Three Months Ended
                                                   September 28, 2008

                                                         Non-GAAP
                                          As Reported   Adjustments  Non-GAAP

    Revenue                                 $24,178       $-         $24,178
    Cost of revenue                          14,212          7 (a)    13,090
                                                          (762)(b)
                                                          (367)(d)
           Gross margin                       9,966     (1,122)       11,088
    Operating expenses:
       Research and development              10,282     (1,185)(a)     8,870
                                                                                    (125)(b)
                                                                                                                    (102)(c)
              Selling,  general  and
                administrative                                                8,142          (2,035)(a)          4,864
                                                                                                                    (611)(b)
                                                                                                                    (632)(c)
              Restructuring  charges                                        -                    -      (e)
              Asset  impairments                                          12,496        (12,496)(f)              -
                      Total  operating  expenses                    30,920        (17,186)              13,734
        Income  (loss)  from  operations                      (20,954)        18,308                (2,646)
              Investment  impairment                                  (6,166)          6,166  (g)                -
              Interest  income  and  other,  net                      427                -                          427
        Income  (loss)  before  income  taxes              (26,693)        24,474                (2,219)
        Provision  for  income  taxes                                    (27)              -                          (27)
        Net  income  (loss)                                            $(26,666)      $24,474              $(2,192)

        Net  income  (loss)  per  shares:
                      Basic                                                          $(0.93)                                    $(0.08)
                      Diluted                                                      $(0.93)                                    $(0.08)
        Weighted  average  number  of  shares:
                      Basic                                                          28,565                                      28,565
                      Diluted                                                      28,565                                      28,565


                                                                                                      Three  Months  Ended
                                                                                                        September  30,2007

                                                                                                                  Non-GAAP
                                                                                      As  Reported    Adjustments  Non-GAAP

        Revenue                                                                    $27,275            $-                  $27,275
        Cost  of  revenue                                                      17,190              (38)(a)        16,458
                                                                                                                    (694)(b)

                        Gross  margin                                            10,085            (732)              10,817
        Operating  expenses:
                Research  and  development                            13,908        (2,067)(a)        11,716
                                                                                                                    (125)(b)

                Selling,  general  and
                  administrative                                                6,832        (1,459)(a)          5,155
                                                                                                                    (218)(b)

                Restructuring  charges                                    3,468        (3,468)(e)              -
                Asset  impairments                                                -                  -                          -
                        Total  operating  expenses                    24,208        (7,337)              16,871
        Income  (loss)  from  operations                        (14,123)        8,069                (6,054)
                Investment  impairment                                        -                  -                          -
                Interest  income  and  other,  net                  1,226              -                      1,226
        Income  (loss)  before  income  taxes                (12,897)        8,069                (4,828)
        Provision  for  income  taxes                                        70              -                            70
        Net  income  (loss)                                              $(12,967)      $8,069              $(4,898)

        Net  income  (loss)  per  shares:
                        Basic                                                          $(0.45)                                  $(0.17)
                        Diluted                                                      $(0.45)                                  $(0.17)
        Weighted  average  number  of  shares:
                        Basic                                                          28,711                                    28,711
                        Diluted                                                      28,711                                    28,711



        Notes:
                                                                                                                  Three  Months  Ended
                                                                                                              Sept.  28,          Sept.  30,
                                                                                                                  2008                      2007

        (a)  Stock-based  compensation                                              $3,213                  $3,564
        (b)  Amortization  of  acquired  intangible  assets            1,498                    1,037
        (c)  Severence                                                                                  734                        -
        (d)  Fair  value  adjustment  of  acquired  inventory              367                        -
        (e)  Restructuring  charges                                                          -                        3,468
        (f)  Asset  impairments                                                            12,496                        -
        (g)  Investment  impairment                                                      6,166                        -
                Total  non-GAAP  adjustments                                        $24,474                  $8,069



                                                      IKANOS  COMMUNICATIONS,  INC.
          Reconciliation  of  GAAP  to  Non-GAAP  Condensed  Consolidated  Statements  of
                                                                        Operations
                                            (In  thousands,  except  per  share  data)

                                                                                                    Nine  Months  Ended
                                                                                                  September  28,  2008

                                                                                                                Non-GAAP
                                                                                    As  Reported    Adjustments      Non-GAAP

        Revenue                                                                  $83,730              $-                  $83,730
        Cost  of  revenue                                                    48,265              (230)(a)        43,828
                                                                                                                (2,744)(b)
                                                                                                                (1,463)(d)
                      Gross  margin                                            35,465          (4,437)              39,902
        Operating  expenses:
              Research  and  development                            33,516          (4,227)(a)        28,502
                                                                                                                    (375)(b)
                                                                                                                    (102)(c)
                                                                                                                    (310)(g)
              Selling,  general  and
                administrative                                              20,282          (4,189)(a)        13,562
                                                                                                                (1,899)(b)
                                                                                                                    (632)(c)
              Restructuring  charges                                        -                    -
              Asset  impairments                                          12,496        (12,496)(f)              -
                      Total  operating  expenses                    66,294        (24,230)              42,064
        Income  (loss)  from  operations                      (30,829)        28,667                (2,162)
              Investment  impairment                                  (6,166)          6,166  (h)                -
              Interest  income  and  other,  net                  1,669                -                      1,669
        Income  (loss)  before  income  taxes              (35,326)        34,833                    (493)
        Provision  for  income  taxes                                      97                -                            97
        Net  income  (loss)                                            $(35,423)      $34,833                  $(590)

        Net  income  (loss)  per  shares:
                      Basic                                                          $(1.22)                                    $(0.02)
                      Diluted                                                      $(1.22)                                    $(0.02)
        Weighted  average  number  of  shares:
                      Basic                                                          29,139                                      29,139
                      Diluted                                                      29,139                                      29,139



                                                                                                        Nine  Months  Ended
                                                                                                      September  30,  2007

                                                                                                                Non-GAAP
                                                                                    As  Reported    Adjustments      Non-GAAP

        Revenue                                                                  $77,601              $-                    $77,601
        Cost  of  revenue                                                    47,060              (125)(a)          44,980
                                                                                                                (1,955)(b)

                      Gross  margin                                            30,541          (2,080)                32,621
        Operating  expenses:
              Research  and  development                            38,940          (5,814)(a)          32,751
                                                                                                                    (375)(b)


              Selling,  general  and
                administrative                                              20,973          (4,446)(a)          15,851
                                                                                                                    (676)(b)

              Restructuring  charges                                    3,468          (3,468)(e)                -
              Asset  impairments                                                -                    -                            -
                      Total  operating  expenses                    63,381        (14,779)                48,602
        Income  (loss)  from  operations                      (32,840)        16,859                (15,981)
              Investment  impairment                                        -                    -                            -
              Interest  income  and  other,  net                  3,851                -                        3,851
        Income  (loss)  before  income  taxes              (28,989)        16,859                (12,130)
        Provision  for  income  taxes                                    224                -                            224
        Net  income  (loss)                                            $(29,213)      $16,859              $(12,354)

        Net  income  (loss)  per  shares:
                      Basic                                                          $(1.03)                                      $(0.44)
                      Diluted                                                      $(1.03)                                      $(0.44)
        Weighted  average  number  of  shares:
                      Basic                                                          28,377                                        28,377
                      Diluted                                                      28,377                                        28,377



        Notes:
                                                                                                                  Nine  Months  Ended
                                                                                                        Sept.  28,                Sept.  30,
                                                                                                            2008                          2007

        (a)  Stock-based  compensation                                          $8,646                      $10,385
        (b)  Amortization  of  acquired  intangible  assets        5,018                          3,006
        (c)  Severence                                                                              734                              -
        (d)  Fair  value  adjustment  of  acquired  inventory      1,463                              -
        (e)  Restructuring  charges                                                      -                              3,468
        (f)  Asset  impairments                                                        12,496                              -
        (g)  In-process  research  and  development                          310                              -
        (h)  Investment  impairment                                                  6,166                              -
                Total  non-GAAP  adjustments                                    $34,833                      $16,859



                                                      IKANOS  COMMUNICATIONS,  INC.
                                  Unaudited  Condensed  Consolidated  Balance  Sheets
                                                                    (In  thousands)
                                                                                                        September  28,  December  30,
                                                                                                                  2008                    2007
                                      Assets
        Current  assets:
            Cash,  cash  equivalents  and  short-term
              investments                                                                            $66,197              $83,972
            Accounts  receivable,  net                                                      13,756                17,081
            Inventory                                                                                    16,476                13,025
            Prepaid  expenses  and  other  current  assets                      1,662                  3,192
                Total  current  assets                                                          98,091              117,270
        Long-term  investments                                                                  1,034                  7,001
        Property  and  equipment,  net                                                    10,625                13,916
        Intangible  assets,  net                                                                7,425                  6,564
        Goodwill                                                                                              -                        6,247
        Other  assets                                                                                        620                  2,158
                                                                                                              $117,795            $153,156


                                          Liabilities  and  Stockholders'  Equity
        Current  liabilities:
            Accounts  payable                                                                    $12,870              $12,852
            Accrued  liabilities                                                                12,163                15,371
                Total  current  liabilities                                                25,033                28,223
        Stockholders'  equity                                                                  92,762              124,933
                                                                                                              $117,795            $153,156
 

Web site: http://www.ikanos.com//



« Previous Page 1 | 2             



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
DownStream: Solutions for Post Processing PCB Designs
Verific: SystemVerilog & VHDL Parsers
TrueCircuits: UltraPLL



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy