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Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)

Fiscal 2016

Fiscal 2015

Three Months Ended 

Three Months Ended

Year Ended

January 30,

October 31,

August 1,

January 31,

November 1,

August 2,

January 30,

January 31,

2016 (a)

2015 (a) (b)

2015 (a) (c)

2015

2014

2014

2016 (a)

2015

(Preliminary)

(Preliminary)

Net revenue

$    616,158

$   674,890

$   710,492

$    857,452

$     930,136

$  961,545

$   2,725,828

$  3,706,963

Cost of goods sold

302,610

379,254

461,719

417,131

454,974

477,741

1,494,736

1,843,706

Gross profit

313,548

295,636

248,773

440,321

475,162

483,804

1,231,092

1,863,257

Operating expenses:

Research and development

239,703

284,308

297,321

285,497

288,435

294,764

1,101,446

1,164,059

Selling and marketing

31,301

32,481

30,841

37,235

34,410

33,949

130,797

143,952

General and administrative

37,812

34,771

36,563

34,651

33,473

31,333

150,173

130,030

Carnegie Mellon University litigation settlement

-

-

654,667

-

-

-

654,667

-

Amortization and write-off of acquired intangible assets

2,462

3,150

2,568

3,100

3,304

3,304

10,748

16,397

Total operating expenses

311,278

354,710

1,021,960

360,483

359,622

363,350

2,047,831

1,454,438

Operating income (loss)

2,270

(59,074)

(773,187)

79,838

115,540

120,454

(816,739)

408,819

Interest and other income, net

1,084

4,644

6,790

4,382

4,764

12,263

17,685

23,334

Income (loss) before income taxes

3,354

(54,430)

(766,397)

84,220

120,304

132,717

(799,054)

432,153

Provision (benefit) for income taxes

(846)

3,320

5,543

2,527

5,000

(6,153)

12,346

(3,193)

Net income (loss)

$        4,200

$  (771,940)

$      81,693

$     115,304

$  138,870

$     (811,400)

$     435,346

Basic net income (loss) per share

$          0.01

$        (0.11)

$        (1.49)

$          0.16

$           0.22

$        0.27

$           (1.59)

$           0.85

Diluted net income (loss) per share

$          0.01

$        (0.11)

$        (1.49)

$          0.16

$           0.22

$        0.27

$           (1.59)

$           0.84

Shares used in computing basic earnings (loss) per share

506,352

504,831

516,368

513,574

513,859

511,821

510,945

511,089

Shares used in computing diluted earnings (loss) per share

508,590

504,831

516,368

522,112

519,907

520,269

510,945

520,760

(a) 

The condensed consolidated financial statements for each of the three  months ended January 30, 2016, October 31, 2015 and August 1, 2015 are preliminary, as well as the twelve months ended January 30, 2016, and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K for the corresponding periods. The filing of each respective Form 10-Q and 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm.  

(b) 

The condensed consolidated financial statements for the three months ended October 31, 2015, for which the Company previously reported preliminary financial results on December 7, 2015 have been adjusted due to the delayed filing of its Form 10-Q for the third quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of October 31, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after December 7, 2015 include a credit adjustment of $4.3 million to COGS due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation, a $1.5 million charge to write down equipment and intangible asset related to a development project the Company decided to discontinue, the recognition of an additional $0.8 million of revenue due to a subsequent rebate adjustment and corresponding reduction to the tax provision of $0.4 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q.

(c) 

The condensed consolidated financial statements for the three months ended August 1, 2015, for which the Company previously reported preliminary financial results on September 11, 2015, have been adjusted due to the delayed filing of its Form 10-Q for the second quarter. These adjustments were made to account for subsequent activities associated with conditions that existed as of August 1, 2015 (Type I Subsequent Events) and are not related to the Audit Committee's investigation of certain accounting and internal control matters. Adjustments that have been recorded to the Company's preliminary financial results after September 11, 2015 include an additional $350.5 million charge due to the subsequent settlement in February 2016 for the Carnegie Mellon University litigation (of which $78.9 million was recorded to COGS), a $13.9 million write down of inventory primarily associated with certain products for the mobile platform business, $3.7 million related to other litigation charges, a $1.5 million charge related to a pension plan  and an additional $3.0 million representing other net subsequent charges, as well as corresponding changes to the income tax benefit from $11.4 million to an income tax provision of $ 5.5 million. Due to the delayed filing and as a result of future subsequent events, there may be additional adjustments to these preliminary financial results through the date of the Company's filing of its Form 10-Q.