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)
|
Class
|
Outstanding at November 2, 2010
|
Common Stock - $0.01 par value
|
78,204,971
|
PART I. FINANCIAL INFORMATION | Page No. | |
Item 1 | Financial Statements: | |
September 30, 2010 (unaudited) and December 31, 2009
|
3 | |
(unaudited) for the three and nine month periods ended September 30, 2010 and 2009
|
4 | |
(unaudited) for the nine month periods ended September 30, 2010 and 2009
|
5 | |
Notes to Consolidated Financial Statements | 6 | |
Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 24 |
Item 3 | Quantitative and Qualitative Disclosures about Market Risk | 32 |
Item 4 | Controls and Procedures | 35 |
PART II. OTHER INFORMATION | ||
Item 1 | Legal Proceedings | 37 |
Item 1A | Risk Factors | 37 |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | 44 |
Item 4 | Reserved | 44 |
Item 5 | Other Information | 44 |
Item 6 | Exhibits | 45 |
Signatures and Certifications | 47 | |
ITEM 1.
|
Financial Statements
|
September 30,
2010
|
December 31,
2009
|
|||||||
Assets
|
(unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 226,844 | $ | 201,465 | ||||
Short-term investments
|
111,903 | 87,196 | ||||||
Accounts receivable, net
|
121,503 | 103,957 | ||||||
Inventories, net
|
101,532 | 86,515 | ||||||
Prepaid expenses and other current assets
|
42,132 | 36,523 | ||||||
Deferred income taxes, net
|
15,449 | 16,522 | ||||||
Total current assets
|
619,363 | 532,178 | ||||||
Property and equipment, net
|
151,667 | 153,265 | ||||||
Goodwill, net
|
69,383 | 64,779 | ||||||
Intangible assets, net
|
52,553 | 43,390 | ||||||
Other long-term assets
|
19,269 | 19,417 | ||||||
Total assets
|
$ | 912,235 | $ | 813,029 | ||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 33,005 | $ | 23,502 | ||||
Accrued compensation
|
39,075 | 14,934 | ||||||
Deferred revenue
|
63,940 | 57,242 | ||||||
Accrued expenses and other liabilities
|
18,313 | 8,560 | ||||||
Other taxes payable
|
15,324 | 14,181 | ||||||
Total current liabilities
|
169,657 | 118,419 | ||||||
Deferred income taxes
|
24,725 | 25,012 | ||||||
Liability for uncertain tax positions
|
11,608 | 11,062 | ||||||
Other long-term liabilities
|
5,225 | 4,116 | ||||||
Total liabilities
|
211,215 | 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; 78,042,121 and 77,367,874 shares issued and outstanding, respectively
|
780 | 774 | ||||||
Additional paid-in capital
|
388,502 | 336,446 | ||||||
Retained earnings
|
308,535 | 303,655 | ||||||
Accumulated other comprehensive income
|
3,203 | 13,545 | ||||||
Total stockholders’ equity
|
701,020 | 654,420 | ||||||
Total liabilities and stockholders’ equity
|
$ | 912,235 | $ | 813,029 |
Three Months Ended
|
Nine months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net sales:
|
||||||||||||||||
Product
|
$ | 203,188 | $ | 152,106 | $ | 573,413 | $ | 435,348 | ||||||||
Software maintenance
|
17,261 | 12,929 | 49,844 | 39,649 | ||||||||||||
Total net sales
|
220,449 | 165,035 | 623,257 | 474,997 | ||||||||||||
Cost of sales:
|
||||||||||||||||
Product
|
$ | 50,380 | $ | 40,476 | $ | 139,818 | $ | 119,234 | ||||||||
Software maintenance
|
1,523 | 1,423 | 3,966 | 4,034 | ||||||||||||
Total cost of sales
|
51,903 | 41,899 | 143,784 | 123,268 | ||||||||||||
Gross profit
|
168,546 | 123,136 | 479,473 | 351,729 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
$ | 79,494 | $ | 65,126 | $ | 233,166 | $ | 199,089 | ||||||||
Research and development
|
39,971 | 35,016 | 114,912 | 99,252 | ||||||||||||
General and administrative
|
17,392 | 12,306 | 49,701 | 42,838 | ||||||||||||
Total operating expenses
|
136,857 | 112,448 | 397,779 | 341,179 | ||||||||||||
Operating income
|
31,689 | 10,688 | 81,694 | 10,550 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest income
|
$ | 380 | $ | 339 | $ | 1,051 | $ | 1,335 | ||||||||
Net foreign exchange gain (loss)
|
426 | 940 | (2,475 | ) | 1,301 | |||||||||||
Other income, net
|
160 | 482 | 970 | 979 | ||||||||||||
Income before income taxes
|
32,655 | 12,449 | 81,240 | 14,165 | ||||||||||||
Provision for (benefit from) income taxes
|
4,522 | 2,518 | 10,152 | (554 | ) | |||||||||||
Net income
|
$ | 28,133 | $ | 9,931 | $ | 71,088 | $ | 14,719 | ||||||||
Basic earnings per share
|
$ | 0.36 | $ | 0.13 | $ | 0.91 | $ | 0.19 | ||||||||
Weighted average shares outstanding - basic
|
78,176 | 77,653 | 77,832 | 77,497 | ||||||||||||
Diluted earnings per share
|
$ | 0.36 | $ | 0.13 | $ | 0.90 | $ | 0.19 | ||||||||
Weighted average shares outstanding - diluted
|
78,862 | 78,103 | 78,848 | 77,842 | ||||||||||||
Dividends declared per share
|
$ | 0.13 | $ | 0.12 | $ | 0.39 | $ | 0.36 |
Nine months Ended
|
||||||||
September 30,
|
||||||||
2010
|
2009
|
|||||||
Cash flow from operating activities:
|
||||||||
Net income
|
$ | 71,088 | $ | 14,719 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
28,220 | 28,536 | ||||||
Stock-based compensation
|
14,194 | 15,238 | ||||||
Tax expense (benefit) from deferred income taxes
|
1,174 | (6,802 | ) | |||||
Tax expense from stock option plans
|
599 | 1,445 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(17,298 | ) | 30,758 | |||||
Inventories
|
(14,712 | ) | 18,632 | |||||
Prepaid expenses and other assets
|
(15,328 | ) | 3,920 | |||||
Accounts payable
|
9,171 | (5,444 | ) | |||||
Deferred revenue
|
6,698 | 3,588 | ||||||
Taxes and other liabilities
|
33,938 | (14,245 | ) | |||||
Net cash provided by operating activities
|
117,744 | 90,345 | ||||||
Cash flow from investing activities:
|
||||||||
Capital expenditures
|
(14,404 | ) | (12,331 | ) | ||||
Capitalization of internally developed software
|
(14,300 | ) | (10,611 | ) | ||||
Additions to other intangibles
|
(2,253 | ) | (4,009 | ) | ||||
Acquisition, net of cash received
|
(2,191 | ) | — | |||||
Purchases of short-term and long-term investments
|
(88,226 | ) | (38,876 | ) | ||||
Sales and maturities of short-term and long-term investments
|
63,519 | 10,034 | ||||||
Net cash (used by) investing activities
|
(57,855 | ) | (55,793 | ) | ||||
Cash flow from financing activities:
|
||||||||
Proceeds from issuance of common stock
|
38,368 | 16,351 | ||||||
Repurchase of common stock
|
(41,862 | ) | (18,200 | ) | ||||
Dividends paid
|
(30,417 | ) | (27,958 | ) | ||||
Tax (benefit) from stock option plans
|
(599 | ) | (1,445 | ) | ||||
Net cash (used by) financing activities
|
(34,510 | ) | (31,252 | ) | ||||
Net change in cash and cash equivalents
|
25,379 | 3,300 | ||||||
Cash and cash equivalents at beginning of period
|
201,465 | 229,400 | ||||||
Cash and cash equivalents at end of period
|
$ | 226,844 | $ | 232,700 | ||||
Three Months Ended
|
Nine months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Weighted average shares outstanding-basic
|
78,176 | 77,653 | 77,832 | 77,497 | ||||||||||||
Plus: Common share equivalents
|
||||||||||||||||
Stock options, restricted stock units
|
686 | 450 | 1,016 | 345 | ||||||||||||
Weighted average shares outstanding-diluted
|
78,862 | 78,103 | 78,848 | 77,842 |
As of
September 30, 2010
|
As of
December 31, 2009
|
|||||||
(unaudited)
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 81,264 | $ | 85,612 | ||||
Cash equivalents:
|
||||||||
Money market accounts
|
145,580 | 115,853 | ||||||
Total cash and cash equivalents
|
226,844 | 201,465 | ||||||
Short-term investments:
|
||||||||
Municipal bonds
|
19,952 | 12,549 | ||||||
Corporate bonds
|
42,040 | 7,587 | ||||||
U.S. treasuries and agencies
|
14,235 | 21,033 | ||||||
Foreign government bonds
|
33,224 | 34,674 | ||||||
Time deposits
|
2,452 | 2,753 | ||||||
Auction rate securities
|
- | 8,177 | ||||||
Auction rate securities put option
|
- | 423 | ||||||
Total short-term investments
|
111,903 | 87,196 | ||||||
Total cash, cash equivalents and investments
|
$ | 338,747 | $ | 288,661 |
As of September 30, 2010
(unaudited)
|
||||||||||||||||||||
Adjusted Cost
|
Gross
Unrealized Gain
|
Gross
Unrealized Loss
|
Cumulative Translation Adjustment
|
Fair Value
|
||||||||||||||||
Municipal bonds
|
$ | 19,923 | $ | 33 | $ | (4 | ) | $ | - | $ | 19,952 | |||||||||
Corporate bonds
|
41,988 | 58 | (6 | ) | - | 42,040 | ||||||||||||||
U.S. treasuries and agencies
|
14,217 | 18 | - | - | 14,235 | |||||||||||||||
Foreign government bonds
|
36,065 | 16 | (134 | ) | (2,723 | ) | 33,224 | |||||||||||||
Time deposits
|
2,452 | - | - | - | 2,452 | |||||||||||||||
Total investments
|
$ | 114,645 | $ | 125 | $ | (144 | ) | $ | (2,723 | ) | $ | 111,903 |
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 September 30, 2010
|
As of December 31, 2009
|
|||||||||||||||
Adjusted Cost
|
Fair Value
|
Adjusted Cost
|
Fair Value
|
|||||||||||||
Due in less than 1 year
|
$ | 81,762 | $ | 80,460 | $ | 44,029 | $ | 43,267 | ||||||||
Due in 1 to 5 years
|
32,883 | 31,443 | 44,478 | 43,929 | ||||||||||||
Total investments
|
$ | 114,645 | $ | 111,903 | $ | 88,507 | $ | 87,196 | ||||||||
Due in less than 1 year
|
Adjusted Cost
|
Fair Value
|
Adjusted Cost
|
Fair Value
|
||||||||||||
Municipal bonds
|
$ | 16,910 | $ | 16,940 | $ | 4,103 | $ | 4,110 | ||||||||
Corporate bonds
|
36,604 | 36,640 | 5,384 | 5,473 | ||||||||||||
U.S. treasuries and agencies
|
8,199 | 8,205 | 5,065 | 5,057 | ||||||||||||
Foreign government bonds
|
17,597 | 16,223 | 18,124 | 17,274 | ||||||||||||
Time deposits
|
2,452 | 2,452 | 2,753 | 2,753 | ||||||||||||
Auction rate securities
|
- | - | 8,600 | 8,177 | ||||||||||||
Auction rate securities put option
|
- | - | - | 423 | ||||||||||||
Total investments
|
$ | 81,762 | $ | 80,460 | $ | 44,029 | $ | 43,267 | ||||||||
Due in 1 to 5 years
|
Adjusted Cost
|
Fair Value
|
Adjusted Cost
|
Fair Value
|
||||||||||||
Municipal bonds
|
$ | 3,013 | $ | 3,012 | $ | 8,388 | $ | 8,439 | ||||||||
Corporate bonds
|
5,384 | 5,400 | 2,094 | 2,114 | ||||||||||||
U.S. treasuries and agencies
|
6,018 | 6,030 | 16,015 | 15,976 | ||||||||||||
Foreign government bonds
|
18,468 | 17,001 | 17,981 | 17,400 | ||||||||||||
Total investments
|
$ | 32,883 | $ | 31,443 | $ | 44,478 | $ | 43,929 |
Fair Value Measurements at Reporting Date Using
(unaudited)
|
||||||||||||||||
Description
|
September 30, 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
|
$ | 145,580 | $ | 145,580 | $ | - | $ | - | ||||||||
Short-term investments available for sale:
|
||||||||||||||||
Municipal bonds
|
19,952 | 19,952 | - | - | ||||||||||||
Corporate bonds
|
42,040 | 42,040 | - | - | ||||||||||||
U.S. treasuries and agencies
|
14,235 | 14,235 | - | - | ||||||||||||
Foreign government bonds
|
33,224 | 33,224 | - | - | ||||||||||||
Time deposits
|
2,452 | 2,452 | - | - | ||||||||||||
Derivatives
|
5,569 | - | 5,569 | - | ||||||||||||
Total Assets
|
$ | 263,052 | $ | 257,483 | $ | 5,569 | $ | - | ||||||||
Liabilities
|
||||||||||||||||
Derivatives
|
$ | (5,456 | ) | $ | - | $ | (5,456 | ) | $ | - | ||||||
Total Liabilities
|
$ | (5,456 | ) | $ | - | $ | (5,456 | ) | $ | - |
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
|
- | |||
Included in other comprehensive income
|
- | |||
Total losses (realized/unrealized)
|
||||
Included in earnings
|
- | |||
Included in other comprehensive income
|
- | |||
Purchases, issuances and settlements
|
(8,600 | ) | ||
Transfer in and/or out of Level 3
|
- | |||
Ending Balance at September 30, 2010
|
$ | - | ||
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
|
||||||||||
September 30, 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
|
$ | 2,849 |
Prepaid expenses and other current assets
|
$ | 7,947 | ||||
Foreign exchange contracts - LT forwards
|
Other long-term assets
|
871 |
Other long-term assets
|
274 | ||||||
Foreign exchange contracts - ST options
|
Prepaid expenses and other current assets
|
877 |
Prepaid expenses and other current assets
|
1,821 | ||||||
Total derivatives designated as hedging instruments
|
$ | 4,597 | $ | 10,042 | ||||||
Derivatives not designated as hedging instruments
|
||||||||||
Foreign exchange contracts - ST forwards
|
Prepaid expenses and other current assets
|
$ | 972 |
Prepaid expenses and other current assets
|
$ | 974 | ||||
Total derivatives not designated as hedging instruments
|
$ | 972 | $ | 974 | ||||||
Total derivatives
|
$ | 5,569 | $ | 11,016 |
Liability Derivatives
|
||||||||||
September 30, 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
|
$ | (2,156 | ) |
Accrued expenses and other liabilities
|
$ | - | |||
Foreign exchange contracts - LT forwards
|
Other long-term liabilities
|
(850 | ) |
Other long-term liabilities
|
- | |||||
Total derivatives designated as hedging instruments
|
$ | (3,006 | ) | $ | - | |||||
Derivatives not designated as hedging instruments
|
||||||||||
Foreign exchange contracts - ST forwards
|
Accrued expenses and other liabilities
|
$ | (2,450 | ) |
Accrued expenses and other liabilities
|
$ | (318 | ) | ||
Total derivatives not designated as hedging instruments
|
$ | (2,450 | ) | $ | (318 | ) | ||||
Total derivatives
|
$ | (5,456 | ) | $ | (318 | ) |
September 30, 2010
(unaudited)
|
||||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|||||||||
2010
|
2010
|
2010
|
||||||||||||
Foreign exchange contracts - forwards and options
|
$ | (6,201 | ) |
Net sales
|
$ | 1,358 |
Net foreign exchange gain (loss)
|
$ | - | |||||
Foreign exchange contracts - forwards and options
|
2,558 |
Cost of sales
|
374 |
Net foreign exchange gain (loss)
|
- | |||||||||
Foreign exchange contracts - forwards and options
|
1,299 |
Operating expenses
|
266 |
Net foreign exchange gain (loss)
|
- | |||||||||
Total
|
$ | (2,344 | ) | $ | 1,998 | $ | - |
September 30, 2009
(unaudited)
|
||||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|||||||||
2009
|
2009
|
2009
|
||||||||||||
Foreign exchange contracts - forwards and options
|
$ | (5,037 | ) |
Net sales
|
$ | (401 | ) |
Net foreign exchange gain (loss)
|
$ | 181 | ||||
Foreign exchange contracts - forwards and options
|
1,465 |
Cost of sales
|
(72 | ) |
Net foreign exchange gain (loss)
|
395 | ||||||||
Foreign exchange contracts - forwards and options
|
82 |
Operating expenses
|
380 |
Net foreign exchange gain (loss)
|
81 | |||||||||
Total
|
$ | (3,490 | ) | $ | (93 | ) | $ | 657 |
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
|
||||||
September 30, 2010 (unaudited)
|
September 30, 2009 (unaudited)
|
||||||||
Foreign exchange contracts - forwards
|
Net foreign exchange gain/(loss)
|
$ | (2,233 | ) | $ | (1,607 | ) | ||
Total
|
$ | (2,233 | ) | $ | (1,607 | ) |
September 30, 2010
(unaudited)
|
||||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|||||||||
2010
|
2010
|
2010
|
||||||||||||
Foreign exchange contracts - forwards and options
|
$ | (4,457 | ) |
Net sales
|
$ | 4,407 |
Net foreign exchange gain (loss)
|
$ | - | |||||
Foreign exchange contracts - forwards and options
|
(2,152 | ) |
Cost of sales
|
1,785 |
Net foreign exchange gain (loss)
|
- | ||||||||
Foreign exchange contracts - forwards and options
|
(1,095 | ) |
Operating expenses
|
853 |
Net foreign exchange gain (loss)
|
- | ||||||||
Total
|
$ | (7,704 | ) | $ | 7,045 | $ | - |
September 30, 2009
(unaudited)
|
||||||||||||||
Derivatives in Cash Flow Hedging Relationship
|
Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion)
|
|||||||||
2009
|
2009
|
2009
|
||||||||||||
Foreign exchange contracts - forwards and options
|
$ | (8,822 | ) |
Net sales
|
$ | 2,578 |
Net foreign exchange gain (loss)
|
$ | 1,132 | |||||
Foreign exchange contracts - forwards and options
|
2,776 |
Cost of sales
|
(740 | ) |
Net foreign exchange gain (loss)
|
(44 | ) | |||||||
Foreign exchange contracts - forwards and options
|
1,747 |
Operating expenses
|
184 |
Net foreign exchange gain (loss)
|
81 | |||||||||
Total
|
$ | (4,299 | ) | $ | 2,022 | $ | 1,169 |
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
|
||||||
September 30, 2010
(unaudited)
|
September 30, 2009
(unaudited)
|
||||||||
Foreign exchange contracts - forwards
|
Net foreign exchange gain/(loss)
|
$ | (857 | ) | $ | (1,791 | ) | ||
Total
|
$ | (857 | ) | $ | (1,791 | ) |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(unaudited)
|
||||||||
Raw materials
|
$ | 48,054 | $ | 42,121 | ||||
Work-in-process
|
4,351 | 2,042 | ||||||
Finished goods
|
49,127 | 42,352 | ||||||
$ | 101,532 | $ | 86,515 |
September 30, 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
|
$ | 53,883 | $ | (28,321 | ) | $ | 25,562 | $ | 38,928 | $ | (20,455 | ) | $ | 18,473 | ||||||||||
Acquired technology
|
32,853 | (23,995 | ) | 8,858 | 28,022 | (20,967 | ) | 7,055 | ||||||||||||||||
Patents
|
20,464 | (6,078 | ) | 14,386 | 19,033 | (5,377 | ) | 13,656 | ||||||||||||||||
Leasehold equipment and other
|
13,936 | (10,189 | ) | 3,747 | 12,577 | (8,371 | ) | 4,206 | ||||||||||||||||
$ | 121,136 | $ | (68,583 | ) | $ | 52,553 | $ | 98,560 | $ | (55,170 | ) | $ | 43,390 |
Amount
|
||||
Balance as of December 31, 2009
|
$ | 64,779 | ||
Acquisitions
|
5,013 | |||
Divestitures
|
- | |||
Foreign currency translation impact
|
(409 | ) | ||
Balance as of September 30, 2010
|
$ | 69,383 |
Three Months Ended
|
Nine months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Comprehensive income:
|
||||||||||||||||
Net income
|
$ | 28,133 | $ | 9,931 | $ | 71,088 | $ | 14,719 | ||||||||
Foreign currency translation gains (losses), net of taxes
|
8,792 | 2,413 | (2,577 | ) | 2,908 | |||||||||||
Unrealized gains (losses) on derivative instruments, net of taxes
|
(908 | ) | (1,987 | ) | (8,000 | ) | (1,838 | ) | ||||||||
Unrealized gains (losses) on investments designated as available for sale, net of taxes
|
(536 | ) | 241 | 235 | 115 | |||||||||||
Total comprehensive income
|
$ | 35,481 | $ | 10,598 | $ | 60,746 | $ | 15,904 |
Three Months Ended
|
Nine months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Stock-based compensation
|
||||||||||||||||
Cost of sales
|
$ | 332 | $ | 335 | $ | 1,014 | $ | 975 | ||||||||
Sales and marketing
|
1,960 | 2,210 | 6,060 | 6,626 | ||||||||||||
Research and development
|
1,771 | 1,929 | 5,129 | 5,349 | ||||||||||||
General and administrative
|
672 | 728 | 1,991 | 2,288 | ||||||||||||
Provision for income taxes
|
(1,295 | ) | (409 | ) | (4,422 | ) | (5,288 | ) | ||||||||
Total
|
$ | 3,440 | $ | 4,793 | $ | 9,772 | $ | 9,950 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net sales:
|
||||||||||||||||
Americas:
|
||||||||||||||||
Unaffiliated customer sales
|
$ | 97,031 | $ | 75,459 | $ | 266,300 | $ | 211,991 | ||||||||
Europe:
|
||||||||||||||||
Unaffiliated customer sales
|
59,882 | 46,683 | 177,681 | 143,026 | ||||||||||||
Asia Pacific:
|
||||||||||||||||
Unaffiliated customer sales
|
63,536 | 42,893 | 179,276 | 119,980 | ||||||||||||
$ | 220,449 | $ | 165,035 | $ | 623,257 | $ | 474,997 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Operating income:
|
||||||||||||||||
Americas
|
$ | 21,395 | $ | 15,058 | $ | 52,689 | $ | 28,658 | ||||||||
Europe
|
31,347 | 20,087 | 87,409 | 52,562 | ||||||||||||
Asia Pacific
|
18,918 | 10,559 | 56,508 | 28,582 | ||||||||||||
Unallocated:
|
||||||||||||||||
Research and development expenses
|
(39,971 | ) | (35,016 | ) | (114,912 | ) | (99,252 | ) | ||||||||
$ | 31,689 | $ | 10,688 | $ | 81,694 | $ | 10,550 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest income:
|
||||||||||||||||
Americas
|
$ | 177 | $ | 165 | $ | 433 | $ | 685 | ||||||||
Europe
|
182 | 145 | 546 | 581 | ||||||||||||
Asia Pacific
|
21 | 29 | 72 | 69 | ||||||||||||
$ | 380 | $ | 339 | $ | 1,051 | $ | 1,335 |
|
September 30,
2010
|
December 31,
2009
|
||||||
(unaudited)
|
||||||||
Long-lived assets:
|
||||||||
Americas
|
$ | 100,245 | $ | 100,489 | ||||
Europe
|
34,773 | 36,555 | ||||||
Asia Pacific
|
16,649 | 16,221 | ||||||
$ | 151,667 | $ | 153,265 |
Nine Months Ended
|
||||||||
September 30,
(unaudited)
|
||||||||
|
2010
|
2009
|
||||||
Balance at the beginning of the period
|
$ | 921 | $ | 952 | ||||
Accruals for warranties issued during the period
|
1,485 | 1,518 | ||||||
Settlements made( in cash or in kind) during the period
|
(1,483 | ) | (1,551 | ) | ||||
Balance at the end of the period
|
$ | 923 | $ | 919 |