Delaware
|
74-1871327
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
11500
North MoPac Expressway
Austin,
Texas
|
78759
|
|
(address
of principal executive offices)
|
(zip
code)
|
Large accelerated filer | T | Accelerated filer | £ | Non-accelerated filer | £ | Smaller reporting company | £ |
Class
|
Outstanding
at May 3, 2010
|
Common
Stock - $0.01 par value
|
77,522,406 |
PART
I. FINANCIAL INFORMATION
|
Page No.
|
|
Item
1
|
Financial
Statements:
|
|
March
31, 2010 (unaudited) and December 31, 2009
|
3
|
|
(unaudited)
for the three months ended March 31, 2010 and 2009
|
4
|
|
(unaudited)
for the three months ended March 31, 2010 and 2009
|
5
|
|
6
|
||
Item
2
|
22
|
|
Item
3
|
29
|
|
Item
4
|
32
|
|
PART
II. OTHER INFORMATION
|
||
Item
1
|
34
|
|
Item
1A
|
34
|
|
Item
2
|
41
|
|
Item
5
|
41
|
|
Item
6
|
42
|
|
43
|
ITEM
1.
|
Financial
Statements
|
March
31, 2010
|
December
31, 2009
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash
equivalents
|
$ | 184,618 | $ | 201,465 | ||||
Short-term
investments
|
110,952 | 87,196 | ||||||
Accounts
receivable,
net
|
104,818 | 103,957 | ||||||
Inventories,
net
|
89,826 | 86,515 | ||||||
Prepaid
expenses and other current
assets
|
34,937 | 36,523 | ||||||
Deferred
income taxes,
net
|
15,222 | 16,522 | ||||||
Total
current
assets
|
540,373 | 532,178 | ||||||
Property
and equipment,
net
|
152,567 | 153,265 | ||||||
Goodwill,
net
|
69,296 | 64,779 | ||||||
Intangible
assets,
net
|
48,369 | 43,390 | ||||||
Other
long-term
assets
|
19,647 | 19,417 | ||||||
Total
assets
|
$ | 830,252 | $ | 813,029 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 27,450 | $ | 23,502 | ||||
Accrued
compensation
|
19,465 | 14,934 | ||||||
Deferred
revenue
|
60,972 | 57,242 | ||||||
Accrued
expenses and other
liabilities
|
12,619 | 8,560 | ||||||
Other
taxes
payable
|
12,306 | 14,181 | ||||||
Total
current
liabilities
|
132,812 | 118,419 | ||||||
Deferred
income
taxes
|
25,088 | 25,012 | ||||||
Liability
for uncertain tax
positions
|
10,926 | 11,062 | ||||||
Other
long-term
liabilities
|
4,259 | 4,116 | ||||||
Total
liabilities
|
173,085 | 158,609 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders’
equity:
|
||||||||
Preferred
stock: par value $0.01; 5,000,000 shares authorized; none issued and
outstanding
|
— | — | ||||||
Common
stock: par value $0.01; 180,000,000 shares authorized; 77,325,552
and 77,367,874 shares issued and outstanding,
respectively
|
773 | 774 | ||||||
Additional
paid-in
capital
|
362,857 | 336,446 | ||||||
Retained
earnings
|
285,422 | 303,655 | ||||||
Accumulated
other comprehensive
income
|
8,115 | 13,545 | ||||||
Total
stockholders’
equity
|
657,167 | 654,420 | ||||||
Total
liabilities and stockholders’
equity
|
$ | 830,252 | $ | 813,029 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Net
sales:
|
||||||||
Product
|
$ | 175,395 | $ | 143,450 | ||||
Software
maintenance
|
15,696 | 14,349 | ||||||
Total
net
sales
|
191,091 | 157,799 | ||||||
Cost
of sales:
|
||||||||
Product
|
42,262 | 39,556 | ||||||
Software
maintenance
|
980 | 1,327 | ||||||
Total
cost of
sales
|
43,242 | 40,883 | ||||||
Gross
profit
|
147,849 | 116,916 | ||||||
Operating
expenses:
|
||||||||
Sales
and
marketing
|
74,441 | 68,826 | ||||||
Research
and
development
|
38,546 | 34,789 | ||||||
General
and
administrative
|
15,340 | 15,780 | ||||||
Total
operating
expenses
|
128,327 | 119,395 | ||||||
Operating
income
(loss)
|
19,522 | (2,479 | ) | |||||
Other
income (expense):
|
||||||||
Interest
income
|
300 | 589 | ||||||
Net
foreign exchange gain
(loss)
|
(698 | ) | (702 | ) | ||||
Other
income (expense),
net
|
348 | 163 | ||||||
Income
before income taxes
|
19,472 | (2,429 | ) | |||||
Provision
for (benefit from) income
taxes
|
1,119 | (2,787 | ) | |||||
Net
income
|
$ | 18,353 | $ | 358 | ||||
Basic
earnings per share
|
$ | 0.24 | $ | 0.00 | ||||
Weighted
average shares outstanding –
basic
|
77,380 | 77,277 | ||||||
Diluted
earnings per share
|
$ | 0.23 | $ | 0.00 | ||||
Weighted
average shares outstanding –
diluted
|
78,435 | 77,436 | ||||||
Dividends
declared per
share
|
$ | 0.13 | $ | 0.12 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Cash
flow from operating activities:
|
||||||||
Net
income
|
$ | 18,353 | $ | 358 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and
amortization
|
9,442 | 8,385 | ||||||
Stock-based
compensation
|
4,916 | 5,082 | ||||||
Tax
expense/(benefit) from deferred income
taxes
|
1,709 | (1,486 | ) | |||||
Tax
expense from stock option
plans
|
1,587 | 242 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(613 | ) | 30,631 | |||||
Inventories
|
(3,006 | ) | 4,740 | |||||
Prepaid
expenses and other
assets
|
(297 | ) | (5,766 | ) | ||||
Accounts
payable
|
3,618 | (5,747 | ) | |||||
Deferred
revenue
|
3,730 | (549 | ) | |||||
Taxes
and other
liabilities
|
2,162 | (11,084 | ) | |||||
Net
cash provided by operating
activities
|
41,601 | 24,806 | ||||||
Cash
flow from investing activities:
|
||||||||
Capital
expenditures
|
(5,271 | ) | (3,004 | ) | ||||
Capitalization
of internally developed
software
|
(3,404 | ) | (3,114 | ) | ||||
Additions
to other
intangibles
|
(543 | ) | (1,340 | ) | ||||
Acquisition,
net of cash
received
|
(2,191 | ) | — | |||||
Purchases
of short-term and long-term
investments
|
(35,823 | ) | (11,850 | ) | ||||
Sales
and maturities of short-term and long-term
investments
|
9,037 | 4,026 | ||||||
Net
cash (used by) investing
activities
|
(38,195 | ) | (15,282 | ) | ||||
Cash
flow from financing activities:
|
||||||||
Proceeds
from issuance of common
stock
|
22,341 | 7,237 | ||||||
Repurchase
of common
stock
|
(30,935 | ) | (9,186 | ) | ||||
Dividends
paid
|
(10,072 | ) | (9,285 | ) | ||||
Tax
(benefit) from stock option
plans
|
(1,587 | ) | (242 | ) | ||||
Net
cash (used by) financing
activities
|
(20,253 | ) | (11,476 | ) | ||||
Net
change in cash and cash
equivalents
|
(16,847 | ) | (1,952 | ) | ||||
Cash
and cash equivalents at beginning of
period
|
201,465 | 229,400 | ||||||
Cash
and cash equivalents at end of
period
|
$ | 184,618 | $ | 227,448 |
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Weighted
average shares
outstanding-basic
|
77,380 | 77,277 | ||||||
Plus:
Common share equivalents
|
||||||||
Stock
options, restricted stock
units
|
1,055 | 159 | ||||||
Weighted
average shares
outstanding-diluted
|
78,435 | 77,436 |
As
of
March
31, 2010
|
As
of
December
31, 2009
|
|||||||
(unaudited)
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash
|
$ | 73,787 | $ | 85,612 | ||||
Cash
equivalents:
|
||||||||
Money
market
accounts
|
110,831 | 115,853 | ||||||
Total
cash and cash
equivalents
|
184,618 | 201,465 | ||||||
Short-term
investments:
|
||||||||
Municipal
bonds
|
16,564 | 12,549 | ||||||
Corporate
bonds
|
21,971 | 7,587 | ||||||
U.S.
treasuries and
agencies
|
28,234 | 21,033 | ||||||
Foreign
government
bonds
|
32,830 | 34,674 | ||||||
Time
deposits
|
2,753 | 2,753 | ||||||
Auction
rate
securities
|
8,198 | 8,177 | ||||||
Auction
rate securities put
option
|
402 | 423 | ||||||
Total
short-term
investments
|
110,952 | 87,196 | ||||||
Total
cash, cash equivalents and
investments
|
$ | 295,570 | $ | 288,661 |
As
of March 31, 2010
(unaudited)
|
||||||||||||||||||||
Adjusted
Cost
|
Gross
Unrealized
Gain
|
Gross
Unrealized
Loss
|
Cumulative
Translation Adjustment
|
Fair
Value
|
||||||||||||||||
Municipal
bonds
|
$ | 16,502 | $ | 62 | $ | — | $ | — | $ | 16,564 | ||||||||||
Corporate
bonds
|
21,937 | 84 | (50 | ) | — | 21,971 | ||||||||||||||
U.S.
treasuries and
agencies
|
28,271 | 1 | (37 | ) | — | 28,235 | ||||||||||||||
Foreign
government
bonds
|
35,700 | 159 | — | (3,030 | ) | 32,829 | ||||||||||||||
Time
deposits
|
2,753 | — | — | — | 2,753 | |||||||||||||||
Auction
rate
securities
|
8,600 | — | (402 | ) | — | 8,198 | ||||||||||||||
Auction
rate securities put option
|
— | 402 | — | — | 402 | |||||||||||||||
Total
investments
|
$ | 113,763 | $ | 708 | $ | (489 | ) | $ | (3,030 | ) | $ | 110,952 |
As
of December 31, 2009
|
||||||||||||||||||||
Adjusted
Cost
|
Gross
Unrealized
Gain
|
Gross
Unrealized
Loss
|
Cumulative
Translation Adjustment
|
Fair
Value
|
||||||||||||||||
Municipal
bonds
|
$ | 12,491 | $ | 58 | $ | — | $ | — | $ | 12,549 | ||||||||||
Corporate
bonds
|
7,478 | 110 | (1 | ) | — | 7,587 | ||||||||||||||
U.S.
treasuries and
agencies
|
21,080 | — | (47 | ) | — | 21,033 | ||||||||||||||
Foreign
government
bonds
|
36,105 | 76 | — | (1,507 | ) | 34,674 | ||||||||||||||
Time
deposits
|
2,753 | — | — | — | 2,753 | |||||||||||||||
Auction
rate
securities
|
8,600 | — | (423 | ) | — | 8,177 | ||||||||||||||
Auction
rate securities put option
|
— | 423 | — | — | 423 | |||||||||||||||
Total
investments
|
$ | 88,507 | $ | 667 | $ | (471 | ) | $ | (1,507 | ) | $ | 87,196 |
As
of March 31, 2010
(unaudited)
|
As
of December 31, 2009
|
|||||||||||||||
Adjusted
Cost
|
Fair
Value
|
Adjusted
Cost
|
Fair
Value
|
|||||||||||||
Due
in less than 1
year
|
$ | 57,581 | $ | 56,227 | $ | 44,029 | $ | 43,267 | ||||||||
Due
in 1 to 5
years
|
56,182 | 54,725 | 44,478 | 43,929 | ||||||||||||
Total
investments
|
$ | 113,763 | $ | 110,952 | $ | 88,507 | $ | 87,196 | ||||||||
Due
in less than 1 year
|
Adjusted
Cost
|
Fair
Value
|
Adjusted
Cost
|
Fair
Value
|
||||||||||||
Municipal
bonds
|
$ | 12,902 | $ | 12,949 | $ | 4,103 | $ | 4,110 | ||||||||
Corporate
bonds
|
6,413 | 6,480 | 5,384 | 5,473 | ||||||||||||
U.S.
treasuries and
agencies
|
9,149 | 9,138 | 5,065 | 5,057 | ||||||||||||
Foreign
government
bonds
|
17,764 | 16,307 | 18,124 | 17,274 | ||||||||||||
Time
deposits
|
2,753 | 2,753 | 2,753 | 2,753 | ||||||||||||
Auction
rate
securities
|
8,600 | 8,198 | 8,600 | 8,177 | ||||||||||||
Auction
rate securities put option
|
— | 402 | — | 423 | ||||||||||||
Total
investments
|
$ | 57,581 | $ | 56,227 | $ | 44,029 | $ | 43,267 | ||||||||
Due
in 1 to 5 years
|
Adjusted
Cost
|
Fair
Value
|
Adjusted
Cost
|
Fair
Value
|
||||||||||||
Municipal
bonds
|
$ | 3,600 | $ | 3,615 | $ | 8,388 | $ | 8,439 | ||||||||
Corporate
bonds
|
15,524 | 15,491 | 2,094 | 2,114 | ||||||||||||
U.S.
treasuries and
agencies
|
19,122 | 19,096 | 16,015 | 15,976 | ||||||||||||
Foreign
government
bonds
|
17,936 | 16,523 | 17,981 | 17,400 | ||||||||||||
Total
investments
|
$ | 56,182 | $ | 54,725 | $ | 44,478 | $ | 43,929 |
Fair
Value Measurements at Reporting Date Using
(unaudited)
|
||||||||||||||||
Description
|
March
31, 2010
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
||||||||||||
Assets
|
||||||||||||||||
Money
Market
Funds
|
$ | 110,831 | $ | 110,831 | $ | — | $ | — | ||||||||
Short-term
investments available for sale:
|
||||||||||||||||
Municipal
bonds
|
16,564 | 16,564 | — | — | ||||||||||||
Corporate
bonds
|
21,971 | 21,971 | — | — | ||||||||||||
U.S.
treasuries and
agencies
|
28,234 | 28,234 | — | — | ||||||||||||
Foreign
government
bonds
|
32,830 | 32,830 | — | — | ||||||||||||
Time
deposits
|
2,753 | 2,753 | — | — | ||||||||||||
Auction
rate
securities
|
8,198 | — | — | 8,198 | ||||||||||||
Auction
rate securities put option
|
402 | — | — | 402 | ||||||||||||
Derivatives
|
10,436 | — | 10,436 | — | ||||||||||||
Total
Assets
|
$ | 232,219 | $ | 213,183 | $ | 10,436 | $ | 8,600 | ||||||||
Liabilities
|
||||||||||||||||
Derivatives
|
$ | (578 | ) | $ | — | $ | (578 | ) | $ | — | ||||||
Total
Liabilities
|
$ | (578 | ) | $ | — | $ | (578 | ) | $ | — |
Fair
Value Measurements at Reporting Date Using
|
||||||||||||||||
Description
|
December
31, 2009
|
Quoted
Prices in Active Markets for Identical Assets
(Level
1)
|
Significant
Other Observable Inputs
(Level
2)
|
Significant
Unobservable Inputs
(Level
3)
|
||||||||||||
Assets
|
||||||||||||||||
Money
Market
Funds
|
$ | 115,853 | $ | 115,853 | $ | — | $ | — | ||||||||
Short-term
investments available for sale
|
||||||||||||||||
Municipal
bonds
|
12,549 | 12,549 | — | — | ||||||||||||
Corporate
bonds
|
7,587 | 7,587 | — | — | ||||||||||||
U.S.
treasuries and
agencies
|
21,033 | 21,033 | — | — | ||||||||||||
Foreign
government
bonds
|
34,674 | 34,674 | — | — | ||||||||||||
Time
deposits
|
2,753 | 2,753 | — | — | ||||||||||||
Auction
rate
securities
|
8,177 | — | — | 8,177 | ||||||||||||
Auction
rate securities put option
|
423 | — | — | 423 | ||||||||||||
Derivatives
|
11,016 | — | 11,016 | — | ||||||||||||
Total
Assets
|
$ | 214,065 | $ | 194,449 | $ | 11,016 | $ | 8,600 | ||||||||
Liabilities
|
||||||||||||||||
Derivatives
|
$ | (318 | ) | $ | — | $ | (318 | ) | $ | — | ||||||
Total
Liabilities
|
$ | (318 | ) | $ | — | $ | (318 | ) | $ | — |
Fair
Value Measurements Using Significant Unobservable Inputs
(Level
3)
|
||||
Short-term
investments available for sale
|
||||
(unaudited)
|
||||
Beginning
Balance at December 31,
2009
|
$ | 8,600 | ||
Total
gains or (losses) (realized/unrealized)
|
||||
Included
in
earnings
|
402 | |||
Included
in other comprehensive
income
|
— | |||
Total
losses
(realized/unrealized)
|
||||
Included
in
earnings
|
(402 | ) | ||
Included
in other comprehensive
income
|
— | |||
Purchases,
issuances and
settlements
|
— | |||
Transfer
in and/or out of Level
3
|
— | |||
Ending
Balance at March 31,
2010
|
$ | 8,600 | ||
The
amount of total gains or (losses) for the period included in earnings (or
changes in net assets) attributable to the change in unrealized gains or
losses relating to assets still held at the reporting date
|
— | |||
$ | — |
Asset
Derivatives
|
||||||||||
March
31, 2010
(unaudited)
|
December
31, 2009
|
|||||||||
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
|||||||
Derivatives
designated as hedging instruments
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Prepaid
expenses and other current assets
|
$ | 6,476 |
Prepaid
expenses and other current assets
|
$ | 7,947 | ||||
Foreign
exchange contracts – LT forwards
|
Other
long-term assets
|
327 |
Other
long-term assets
|
274 | ||||||
Foreign
exchange contracts – ST options
|
Prepaid
expenses and other current assets
|
2,331 |
Prepaid
expenses and other current assets
|
1,821 | ||||||
Total
derivatives designated as hedging
instruments
|
$ | 9,134 | $ | 10,042 | ||||||
Derivatives
not designated as hedging
instruments
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Prepaid
expenses and other current assets
|
$ | 1,302 |
Prepaid
expenses and other current assets
|
$ | 974 | ||||
Total
derivatives not designated as hedging instruments
|
$ | 1,302 | $ | 974 | ||||||
Total
derivatives
|
$ | 10,436 | $ | 11,016 |
Liability
Derivatives
|
||||||||||
March
31, 2010
(unaudited)
|
December
31, 2009
|
|||||||||
Balance
Sheet Location
|
Fair
Value
|
Balance
Sheet Location
|
Fair
Value
|
|||||||
Derivatives
designated as hedging instruments
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Accrued
expenses and other liabilities
|
$ | (33 | ) |
Accrued
expenses and other liabilities
|
$ | — | |||
Foreign
exchange contracts – LT forwards
|
Other
long-term liabilities
|
(110 | ) |
Other
long-term liabilities
|
— | |||||
Total
derivatives designated as hedging
instruments
|
$ | (143 | ) | $ | — | |||||
Derivatives
not designated as hedging
instruments
|
||||||||||
Foreign
exchange contracts – ST forwards
|
Accrued
expenses and other liabilities
|
$ | (435 | ) |
Accrued
expenses and other liabilities
|
$ | (318 | ) | ||
Total
derivatives not designated as hedging instruments
|
$ | (435 | ) | $ | (318 | ) | ||||
Total
derivatives
|
$ | (578 | ) | $ | (318 | ) |
March
31, 2010
(unaudited)
|
||||||||||||||
Derivatives
in Cash Flow Hedging Relationship
|
Amount
of Gain/(Loss) Recognized in OCI (Effective Portion)
|
Location
of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Amount
of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Location
of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount
Excluded from Effectiveness Testing)
|
Amount
of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount
Excluded from Effectiveness Testing)
|
|||||||||
Foreign
exchange contracts – forwards and options
|
$ | 1,515 |
Net
sales
|
$ | 1,037 |
Net
foreign exchange gain (loss)
|
$ | — | ||||||
Foreign
exchange contracts – forwards and options
|
(1,391 | ) |
Cost
of sales
|
769 |
Net
foreign exchange gain (loss)
|
— | ||||||||
Foreign
exchange contracts – forwards and options
|
(885 | ) |
Operating
expenses
|
368 |
Net
foreign exchange gain (loss)
|
— | ||||||||
Total
|
$ | (761 | ) | $ | 2,174 | $ | — |
March
31, 2009
(unaudited)
|
||||||||||||||
Derivatives
in Cash Flow Hedging Relationship
|
Amount
of Gain/(Loss) Recognized in OCI (Effective Portion)
|
Location
of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Amount
of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective
Portion)
|
Location
of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount
Excluded from Effectiveness Testing)
|
Amount
of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount
Excluded from Effectiveness Testing)
|
|||||||||
Foreign
exchange contracts – forwards and options
|
$ | 3,796 |
Net
sales
|
$ | 2,633 |
Net
foreign exchange gain (loss)
|
$ | 940 | ||||||
Foreign
exchange contracts – forwards and options
|
(2,746 | ) |
Cost
of sales
|
(255 | ) |
Net
foreign exchange gain (loss)
|
(523 | ) | ||||||
Foreign
exchange contracts – forwards and options
|
(888 | ) |
Operating
expenses
|
(266 | ) |
Net
foreign exchange gain (loss)
|
— | |||||||
Total
|
$ | 162 | $ | 2,112 | $ | 417 |
Derivatives
not Designated as Hedging Instruments
|
Location
of Gain (Loss) Recognized in Income
|
Amount
of Gain (Loss) Recognized in Income
|
Amount
of Gain (Loss) Recognized in Income
|
||||||
March
31, 2010
(unaudited)
|
March
31, 2009
(unaudited)
|
||||||||
Foreign
exchange contracts – forwards
|
Net
foreign exchange gain/(loss)
|
$ | 439 | $ | 3,089 | ||||
Total
|
$ | 439 | $ | 3,089 |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(unaudited)
|
||||||||
Raw
materials
|
$ | 43,524 | $ | 42,121 | ||||
Work-in-process
|
2,603 | 2,042 | ||||||
Finished
goods
|
43,699 | 42,352 | ||||||
$ | 89,826 | $ | 86,515 |
March 31, 2010
|
December 31, 2009
|
|||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
|||||||||||||||||||
Capitalized
software development costs
|
$ | 42,494 | $ | (23,053 | ) | $ | 19,441 | $ | 38,928 | $ | (20,455 | ) | $ | 18,473 | ||||||||||
Acquired
technology
|
32,830 | (21,775 | ) | 11,055 | 28,022 | (20,967 | ) | 7,055 | ||||||||||||||||
Patents
|
19,482 | (5,611 | ) | 13,871 | 19,033 | (5,377 | ) | 13,656 | ||||||||||||||||
Leasehold
equipment and other
|
12,978 | (8,976 | ) | 4,002 | 12,577 | (8,371 | ) | 4,206 | ||||||||||||||||
$ | 107,784 | $ | (59,415 | ) | $ | 48,369 | $ | 98,560 | $ | (55,170 | ) | $ | 43,390 |
Amount
|
||||
Balance
as of December 31,
2009
|
$ | 64,779 | ||
Acquisitions
|
5,000 | |||
Divestitures
|
— | |||
Foreign
currency translation
impact
|
(483 | ) | ||
Balance
as of March 31,
2009
|
$ | 69,296 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Comprehensive
income:
|
||||||||
Net
income
|
$ | 18,353 | $ | 358 | ||||
Foreign
currency translation (losses), net of
taxes
|
(3,962 | ) | (2,775 | ) | ||||
Unrealized
(losses) on derivative instruments, net of taxes
|
(3,345 | ) | (78 | ) | ||||
Unrealized
gains/(losses) on available for sale securities, net of
taxes
|
1,877 | (180 | ) | |||||
Total
comprehensive income
|
$ | 12,923 | $ | (2,675 | ) |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Stock-based
compensation
|
||||||||
Cost
of sales
|
$ | 362 | $ | 310 | ||||
Sales
and marketing
|
2,104 | 2,185 | ||||||
Research
and development
|
1,765 | 1,737 | ||||||
General
and administrative
|
685 | 799 | ||||||
4,916 | 5,031 | |||||||
Provision
for income taxes
|
(1,545 | ) | (3,014 | ) | ||||
Total
|
$ | 3,371 | $ | 2,017 |
Three
Months Ended
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Net
sales:
|
||||||||
Americas:
|
$ | 79,197 | $ | 68,439 | ||||
Europe:
|
57,923 | 49,480 | ||||||
Asia
Pacific:
|
53,971 | 39,880 | ||||||
$ | 191,091 | $ | 157,799 |
Three
Months Ended
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Operating
income (loss):
|
||||||||
Americas
|
$ | 13,379 | $ | 5,307 | ||||
Europe
|
27,039 | 16,780 | ||||||
Asia
Pacific
|
17,650 | 10,223 | ||||||
Unallocated:
|
||||||||
Research
and development expenses
|
(38,546 | ) | (34,789 | ) | ||||
$ | 19,522 | $ | (2,479 | ) |
Three
Months Ended
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Interest
income:
|
||||||||
Americas
|
$ | 111 | $ | 294 | ||||
Europe
|
159 | 274 | ||||||
Asia
Pacific
|
30 | 21 | ||||||
$ | 300 | $ | 589 |
|
March
31,
2010
|
December
31,
2009
|
||||||
(unaudited)
|
||||||||
Long-lived
assets:
|
||||||||
Americas
|
$ | 100,555 | $ | 100,489 | ||||
Europe
|
35,407 | 36,555 | ||||||
Asia
Pacific
|
16,605 | 16,221 | ||||||
$ | 152,567 | $ | 153,265 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(unaudited)
|
||||||||
2010
|
2009
|
|||||||
Balance
at the beginning of the
period
|
$ | 921 | $ | 952 | ||||
Accruals
for warranties issued during the
period
|
485 | 496 | ||||||
Settlements
made (in cash or in kind) during the period
|
(484 | ) | (602 | ) | ||||
Balance
at the end of the
period
|
$ | 922 | $ | 846 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Net
sales:
|
||||||||
Americas
|
41.4 | % | 43.4 | % | ||||
Europe
|
30.3 | 31.3 | ||||||
Asia
Pacific
|
28.3 | 25.3 | ||||||
Consolidated
net sales
|
100.0 | 100.0 | ||||||
Cost
of sales
|
22.6 | 25.9 | ||||||
Gross
profit
|
77.4 | 74.1 | ||||||
Operating
expenses:
|
||||||||
Sales
and marketing
|
39.0 | 43.6 | ||||||
Research
and development
|
20.2 | 22.1 | ||||||
General
and administrative
|
8.0 | 10.0 | ||||||
Total
operating expenses
|
67.2 | 75.7 | ||||||
Operating
income (loss)
|
10.2 | (1.6 | ) | |||||
Other
income (expense):
|
||||||||
Interest
income
|
0.2 | 0.4 | ||||||
Net
foreign exchange gain (loss)
|
(0.4 | ) | (0.4 | ) | ||||
Other
income (expense), net
|
0.2 | 0.1 | ||||||
Income
(loss) before income taxes
|
10.2 | (1.5 | ) | |||||
Provision
for (benefit from) income taxes
|
0.6 | (1.7 | ) | |||||
Net
income
|
9.6 | % | 0.2 | % |
Effective
tax rate for the three months ended March 31, 2009
|
115% | |||
Decrease
in unrecognized tax benefits for uncertain tax positions
|
(47%) | |||
Change
in valuation allowance related to deferred tax assets for which tax
benefits were previously recognized, recorded during the three months
ended March 31, 2009
|
(18%) | |||
Increased
profits in foreign jurisdictions with reduced income tax
rates
|
(17%) | |||
Decrease
in non-deductible stock-based compensation expense as a percentage of net
income
|
(14%) | |||
Enhanced
deduction for certain research and development expenses in
2010
|
(12%) | |||
Increase
in the tax benefit from equity awards that do not ordinarily result in a
tax benefit
|
(6%) | |||
Increase
in the partial release of a deferred tax asset valuation
allowance
|
(3%) | |||
Other
|
(2%) | |||
Expiration
of the research and development tax credit as of December 31,
2009
|
10% | |||
Effective
tax rate for the three months ended March 31, 2010
|
6% |