WAVECOM S.A.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share data)
Prepared in accordance with U.S. generally accepted accounting
principles.
Three months ended
December 31, September 30, December 31,
2003 2004 2004
Euro Euro Euro
Revenues :
Product sales 58,577 36,235 36,881
Technology
development and
other services 1,704 184 564
60,281 36,419 37,445
Cost of revenues :
Product sales :
Cost of goods sold 37,811 27,264 22,581
Adjustment of
royalty provision (9,076) - -
Total cost of
product sales 28,735 27,264 22,581
Technology development
and other services 2,084 1,825 2,901
30,819 29,089 25,482
Gross profit 29,462 7,330 11,963
Operating expenses :
Research and
development 13,354 10,187 8,441
Sales and marketing 5,142 4,108 3,964
General and
administrative 10,197 6,266 5,799
Impairment of
intangible and
tangible assets 4,244 - 2,545
Restructuring costs - 5,182 8,509
Total operating
expenses 32,937 25,743 29,258
Operating loss (3,475) (18,413) (17,295)
Interest income and
other financial
income, net 507 174 195
Foreign exchange gain
(loss), net (2,129) 389 (3,424)
Total financial
income (1,622) 563 (3,229)
Loss before minority
interests and income
taxes (5,097) (17,850) (20,524)
Minority interests - - -
Loss before income
taxes (5,097) (17,850) (20,524)
Income tax expense
(benefit) (315) 309 (33)
Net loss (4,782) (18,159) (20,491)
Basic net loss per
share (0.31) (1.18) (1.34)
Diluted net loss per
share (0.31) (1.18) (1.34)
Number of shares used
for computing :
- basic net loss per
share 15,183,387 15,342,435 15,342,940
- diluted net loss
per share 15,183,387 15,342,435 15,342,940
WAVECOM S.A.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share data)
Prepared in accordance with U.S. generally accepted accounting
principles.
Year ended December 31,
2003 2003 2004
as reported restated
Euro Euro Euro
Revenues :
Product sales 271,773 271,773 149,974
Technology development and other
services 3,855 3,855 1,580
275,628 275,628 151,554
Cost of revenues :
Product sales :
Cost of goods sold 177,541 177,541 107,134
Adjustment of royalty provision (9,076) (9,076) -
Total cost of product sales 168,465 168,465 107,134
Technology development and other
services 4,704 4,704 8,391
173,169 173,169 115,525
Gross profit 102,459 102,459 36,029
Operating expenses :
Research and development 62,123 62,123 47,083
Sales and marketing 27,766 27,766 15,685
General and administrative 39,141 39,141 28,956
Impairment of intangible and
tangible assets 4,244 4,244 4,313
Restructuring costs - - 19,702
Amortization of deferred stock-
based compensation 205 205 -
Total operating expenses 133,479 133,479 115,739
Operating loss (31,020) (31,020) (79,710)
Interest income and other
financial income, net 2,767 2,767 1,544
Foreign exchange loss, net (2,065) (2,065) (578)
Total financial income 702 702 966
Loss before minority interests and
income taxes (30,318) (30,318) (78,744)
Minority interests (38) (38) -
Loss before income taxes (30,280) (30,280) (78,744)
Income tax expense (benefit) (4,400) 861 13
Net loss (25,880) (31,141) (78,757)
Basic net loss per share (1.71) (2.06) (5.14)
Diluted net loss per share (1.71) (2.06) (5.14)
Number of shares used for
computing :
- basic net loss per share 15,098,795 15,098,795 15,317,661
- diluted net loss per share 15,098,795 15,098,795 15,317,661
WAVECOM S.A.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Prepared in accordance with U.S. generally
accepted accounting principles.
At December 31,
2003 2003 2004
as reported restated
Euro Euro Euro
ASSETS
Current assets :
Cash and cash equivalents 110,705 110,705 53,318
Accounts receivable, net 44,622 44,622 22,864
Inventory, net 33,809 33,809 16,409
Value added tax recoverable 2,235 2,235 1,102
Prepaid expenses and other current
assets 11,442 11,442 5,481
Recoverable estimated tax payments 7,670 7,670 -
Total current assets 210,483 210,483 99,174
Intangible and tangible assets, net 27,862 27,862 12,617
Long-term investments 16,502 16,502 9,017
Other assets 9,410 9,410 5,295
Recoverable tax loss carryback and
research tax credit 9,913 9,913 11,103
Deferred tax assets 6,320 1,059 -
Total assets 280,490 275,229 137,206
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities :
Accounts payable 85,995 85,995 36,393
Accrued compensation 7,208 7,208 8,089
Other accrued expenses 35,655 35,655 32,217
Current portion of capitalized lease
obligations 855 855 466
Deferred revenue and advances received
from customers 1,420 1,420 820
Other liabilities 71 71 731
Total current liabilities 131,204 131,204 78,716
Long-term portion of capitalized lease
obligations 425 425 302
Other long-term liabilities 6,267 6,267 1,732
Total long-term liabilities 6,692 6,692 2,034
Minority interests - - -
Shareholders' equity :
Shares, Euro 1 nominal value, 15 506
290 shares issued at December 31, 2004
(15 342 789 at December 31, 2003) 15,343 15,343 15,506
Additional paid-in capital 136,460 136,460 137,039
Treasury stock (156 345 shares in
treasury at December 31, 2004 and
2003) (1,312) (1,312) (1,312)
Deferred compensation (323) (323) -
Retained deficit (9,326) (14,587) (93,344)
Accumulated other comprehensive income 1,752 1,752 (1,433)
Total shareholders' equity 142,594 137,333 56,456
Total liabilities and shareholders'
equity 280,490 275,229 137,206
WAVECOM S.A.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Prepared in accordance with U.S. generally accepted accounting
principles.
Year ended December 31,
2003 2003 2004
as reported restated
Euro Euro Euro
Cash flows from operating activities :
Net loss (25,880) (31,141) (78,757)
Adjustments to reconcile net loss to net
cash provided from operating
activities :
Amortization of intangible and tangible
assets 14,193 14,193 13,468
Impairment of intangible and tangible
assets 4,244 4,244 4,313
Reversal of long term investment
depreciation - - (716)
Amortization of deferred stock-based
compensation 756 756 350
Minority interests (38) (38) -
Goodwill revaluation 140 140
Deferred taxes 5,611 10,872 1,059
Net decrease in cash from working
capital items (4,761) (4,761) (2,199)
Net cash used by operating activities (5,735) (5,735) (62,482)
Cash flows from investing activities :
Disposal of short-term investments 15,112 15,112 -
Disposal (acquisition) of long term
investments (2,350) (2,350) 7,004
Purchase of minority interest in Arguin (251) (251) (1,768)
Purchases of property and equipment (11,381) (11,381) (2,554)
Proceeds from sale of property and
equipment 76 76 767
Proceeds from sale of long term
investments - - 1,638
Net cash provided by investing
activities 1,206 1,206 5,087
Cash flows from financing activities :
Principal payments on capital lease
obligations (743) (743) (954)
Purchases of treasury stock (1,312) (1,312) -
Proceeds from exercise of stock options
and founders' warrants 791 791 742
Net cash used by financing activities (1,264) (1,264) (212)
Effect of exchange rate changes on cash
and cash equivalents (2,918) (2,918) 220
Net decrease in cash and cash
equivalents (8,711) (8,711) (57,387)
Cash and cash equivalents, beginning of
period 119,416 119,416 110,705
Cash and cash equivalents, end of period 110,705 110,705 53,318