Silicon Graphics International Corp. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 28, June 29, 2013 2012 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 175,181 $ 104,851 Current portion of restricted cash 531 980 Accounts receivable, net 59,842 98,293 Inventories 61,770 123,391 Deferred cost of revenue 21,204 49,407 Prepaid expenses and other current assets 14,094 18,443 ----------- ----------- Total current assets 332,622 395,365 Non-current portion of restricted cash 2,853 3,088 Property and equipment, net 26,170 27,404 Intangible assets, net 4,643 8,675 Non-current portion of deferred cost of revenue 7,281 17,466 Other assets 34,284 44,882 ----------- ----------- Total assets $ 407,853 $ 496,880 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 51,531 $ 69,448 Credit facility - 15,200 Accrued compensation 28,504 24,246 Other current liabilities 35,364 48,587 Current portion of deferred revenue 86,357 124,924 ----------- ----------- Total current liabilities 201,756 282,405 Non-current portion of deferred revenue 50,362 64,717 Long-term income taxes payable 10,149 20,568 Retirement benefit obligations 11,542 11,484 Other non-current liabilities 3,790 6,814 ----------- ----------- Total liabilities 277,599 385,988 Stockholders' equity 130,254 110,892 ----------- ----------- Total liabilities and stockholders' equity $ 407,853 $ 496,880 =========== =========== Silicon Graphics International Corp. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended ------------------------------------------------ June 28, 2013 Net (Loss) Gross Gross Operating Income EPS Profit Margin Expenses -------- -------- -------- ------- ---------- GAAP $ (4,465) $ (0.13) $ 46,786 27% $ 52,053 Share-based compensation in cost of revenue (1) 336 0.01 336 0% - Share-based compensation in operating expenses (1) 1,948 0.06 - - (1,948) Amortization of intangibles in cost of revenue (1) 255 0.01 255 0% - Amortization of intangibles in operating expenses (1) 615 0.02 - - (615) Restructuring and severance in cost of revenue (2) 872 0.02 872 1% - Restructuring and severance in operating expenses (2) 5,936 0.17 - - (5,936) Other non-recurring items in cost of revenue (2) 161 - 161 0% - Other non-recurring items in operating expenses (2) 220 0.01 - 0% (220) Canada tax benefits (2) - - - - - -------- -------- -------- ------- ---------- Non-GAAP $ 5,878 $ 0.17 $ 48,410 28% $ 43,334 ======== ======== ======== ======= ========== Weighted average shares used in computing: Basic net income (loss) per share 33,859 Dilutive net income (loss) per share 35,000 Twelve Months Ended ------------------------------------------------ June 28, 2013 Net (Loss) Gross Gross Operating Income EPS Profit Margin Expenses -------- -------- -------- ------- ---------- GAAP $ (2,820) $ (0.09) $189,052 25% $ 202,706 Share-based compensation in cost of revenue 1,598 0.05 1,598 0% - Share-based compensation in operating expenses 8,502 0.25 - - (8,502) Amortization of intangibles in cost of revenue 1,033 0.03 1,033 0% - Amortization of intangibles in operating expenses 2,676 0.08 - - (2,676) Restructuring and severance in cost of revenue 1,865 0.06 1,865 0% - Restructuring and severance in operating expenses 12,100 0.36 - - (12,100) Other non-recurring items in cost of revenue 161 - 161 0% - Other non-recurring items in operating expenses (218) (0.01) - - 218 Canada tax benefits (12,736) (0.37) - - - -------- -------- -------- ------- ---------- Non-GAAP $ 12,161 $ 0.36 $193,709 25% $ 179,646 ======== ======== ======== ======= ========== Weighted average shares used in computing: Basic net income (loss) per share 32,909 Dilutive net income (loss) per share 33,814 Three Months Ended -------------------------------------------------- June 29, 2012 Net Gross Gross Operating Loss EPS Profit Margin Expenses -------- -------- -------- ------- ---------- GAAP $(18,386) $ (0.58) $ 37,486 21% $ 53,122 Share-based compensation in cost of revenue (1) 323 0.01 323 0% - Share-based compensation in operating expenses (1) 1,813 0.06 - - (1,813) Amortization of intangibles in cost of revenue (1) 371 0.01 371 0% - Amortization of intangibles in operating expenses (1) 696 0.03 - - (696) Restructuring and severance in cost of revenue (2) 148 - 148 0% - Restructuring and severance in operating expenses (2) 2,811 0.09 - 0% (2,811) Excess and obsolete inventory write-off in cost of revenue (2) 10,135 0.32 10,135 6% - Other non-recurring items in costs of revenue (2) (1,222) (0.04) (1,222) (1)% - Other non-recurring items in operating expenses (2) - - - 0% - -------- -------- -------- ------- ---------- Non-GAAP $ (3,311) $ (0.10) $ 47,241 26% $ 47,802 ======== ======== ======== ======= ========== Weighted average shares used in computing: Basic net income (loss) per share 31,947 Dilutive net income (loss) per share 31,947 Twelve Months Ended ------------------------------------------------- June 29, 2012 Net (Loss) Gross Gross Operating Income EPS Profit Margin Expenses -------- -------- -------- ------- ---------- GAAP $(24,461) $ (0.77) $193,817 26% $ 215,260 Share-based compensation in cost of revenue 1,358 0.04 1,358 0% - Share-based compensation in operating expenses 8,703 0.28 - 0% (8,703) Amortization of intangibles in cost of revenue 1,736 0.05 1,736 0% - Amortization of intangibles in operating expenses 3,454 0.11 - 0% (3,454) Restructuring and severance in cost of revenue 148 0.00 148 0% - Restructuring and severance in operating expenses 2,944 0.10 - 0% (2,944) Excess and obsolete inventory write-off in cost of revenue 10,135 0.32 10,135 1% - Other non-recurring items in costs of revenue (1,222) (0.04) (1,222) 0% - Other non-recurring items in operating expenses 1,000 0.03 - 0% (1,000) -------- -------- -------- ------- ---------- Non-GAAP $ 3,795 $ 0.12 $205,972 27% $ 199,159 ======== ======== ======== ======= ========== Weighted average shares used in computing: Basic net income (loss) per share 31,653 Dilutive net income (loss) per share 31,653