For a full reconciliation of each non-GAAP item used herein to the most directly comparable GAAP financial measure, please refer to the schedule included with this release. The Company believes the additional non-GAAP measures are useful to investors for the purpose of financial analysis. Management uses these non-GAAP measures internally to evaluate its in-period operating performance before gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. In addition, the measures are used to plan for the Company’s future periods. However, non-GAAP measures are neither stated in accordance with, nor are they a substitute for, GAAP measures.THIRD QUARTER AND RECENT HIGHLIGHTS Highlights of events during the third quarter of 2012 and recently include:
- On October 2, 2012, Goldman Sachs completed the repurchase of PMC’s common stock under the Accelerated Stock Buyback Agreement previously announced on May 2, 2012. Total shares repurchased under the Accelerated Stock Buyback Agreement are 26.8 million. In addition, PMC repurchased an additional 6.9 million shares under the Employee Equity Stock Buyback Plan which was approved for $40 million. The total amount of shares repurchased under both programs is approximately 33.7 million, representing approximately 14.5 percent of PMC’s total shares outstanding as of May 2, 2012.
- PMC announced the redemption of the Company’s 2.25% senior convertible notes. The redemption took place on October 20, 2012, at one hundred per cent (100%) of the outstanding principal amount of the notes plus accrued and unpaid interest. On October 20, 2012, PMC redeemed the remaining outstanding Senior Convertible Notes for approximately $51.8 million.
- As a leader in the innovation of storage networks for next generation cloud, data center, and broader market applications, Adaptec by PMC recently announced the introduction of the Series 7 family of RAID adapters, representing the industry’s first and highest port count PCIe Gen 3 6Gb/s SAS/SATA RAID adapters. The Adaptec Series 7 family represents the first RAID adapters to take full advantage of PCIe Gen3 bandwidth, providing unmatched performance for a broad range of enterprise and cloud computing applications. With 16 direct-connected solid state drives (SSDs), Series 7 adapters can deliver up to 450,000 input/output operations per second (IOPS) on a 4K random read block size, equivalent to nearly 10x the performance of previous-generation RAID adapters.
- Building on its optical leadership, PMC delivered the industry’s first tri-speed converged carrier Ethernet/OTN framer. PMC's PM5442 META 120G enables OEMs to substantially reduce total development costs by addressing high-speed line-card needs with a single silicon platform. As interconnect speeds increase, OTN is emerging as the de-facto protocol enabling seamless and scalable convergence of IP infrastructure and the optical transport domain. OTN provides the operations, administration and maintenance (OAM) functionality necessary for a DWDM transport infrastructure, and service providers see value in extending the OTN OAM out to the router interface. Additionally, OTN supports forward error correction (FEC) for reach extension, significantly increasing the number of links over which 100G can be deployed.