SELECTED CONSOLIDATED FINANCIAL DATA
The table below sets forth selected consolidated financial data for the Company for each of the years in the five-year period ended December 31, 1997. Such data have been derived from the consolidated financial statements of the Company. Consolidated audited financial statements for each of the years in the three-year period ended December 31, 1997, including the Notes thereto (collectively, the "Consolidated Financial Statements") are included elsewhere in this annual report.
The following information should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and the related Notes thereto included elsewhere in this annual report.
Year ended December 31,
| (in millions except per share and ratio data) | 1993 (1) | 1994 (1) | 1995 (1) | 1996 | 1997 |
| Consolidated Statement of Income Data: | |||||
| Net sales | $ 2,007.7 | $ 2,602.2 | $ 3,520.7 | $ 4,078.3 | $ 3,969.8 |
| Other revenues | 29.8 | 42.7 | 33.7 | 44.1 | 49.4 |
| Net revenues | 2,037.5 | 2,644.9 | 3,554.4 | 4,122.4 | 4,019.2 |
| Cost of sales(2) | (1,248.4) | (1,528.7) | (2,096.0) | (2,414.7) | (2,457.4) |
| Gross profit(2) | 789.1 | 1,116.2 | 1,458.4 | 1,707.7 | 1,561.8 |
| Operating expenses: | |||||
| Selling, general & administrative | (302.5) | (339.9) | (413.2) | (421.1) | (454.3) |
| Research and development(3) | (270.9) | (338.3) | (440.3) | (532.3) | (610.9) |
| Restructuring costs | (49.9) | (37.0) | (13.0) | -- | -- |
| Other income and expenses(3) | 49.7 | 32.0 | 59.1 | 45.1 | 23.2 |
| Total operating expenses | (573.6) | (683.2) | (807.4) | (908.3) | (1,042.0) |
| Operating income | 215.5 | 433.0 | 651.0 | 799.4 | 519.8 |
| Net interest expenses | (37.8) | (21.0) | (16.8) | (11.2) | (2.6) |
| Gain on disposal of investment | -- | -- | -- | 7.3 | -- |
| Income before income taxes and minority interests | 177.7 | 412.0 | 634.2 | 795.5 | 517.2 |
| Income tax expense | (17.6) | (49.5) | (108.3) | (171.6) | (113.0) |
| Income before minority interests | 160.1 | 362.5 | 525.9 | 623.9 | 404.2 |
| Minority interests(4) | -- | -- | 0.6 | 1.6 | 2.4 |
| Net income | $ 160.1 | $ 362.5 | $ 526.5 | $ 625.5 | $ 406.6 |
| Earnings per share (basic)(5) | $ 1.92 | $ 3.04 | $ 4.03 | $ 4.50 | $ 2.92 |
| Earnings per share (diluted)(5) | $ 1.92 | $ 3.03 | $ 4.01 | $ 4.49 | $ 2.91 |
| Number of shares used in calculating earnings per share (basic) | 83.5 | 119.4 | 130.6 | 138.7 | 139.1 |
| Number of shares used in calculating earnings per share (diluted) | 83.5 | 119.7 | 131.3 | 139.2 | 139.9 |
| Ratio of earnings to fixed charges(6) | 4.6 | 10.9 | 13.2 | 18.6 | 13.4 |
| Consolidated Balance Sheet Data (end of period): | |||||
| Cash, cash equivalents and marketable securities | $ 327.4 | $ 461.5 | $ 758.4 | $ 556.4 | $ 702.2 |
| Working capital(7) | 390.0 | 291.1 | 417.4 | 611.8 | 443.5 |
| Total assets | 2,240.9 | 3,224.7 | 4,486.0 | 5,005.5 | 5,445.7 |
| Short-term debt (including current portion of long-term debt) | 231.1 | 322.5 | 492.8 | 428.2 | 424.6 |
| Long-term debt (excluding current portion)(1) | 374.8 | 277.2 | 200.7 | 194.9 | 356.4 |
| Shareholders' equity(1) | 1,004.0 | 1,680.0 | 2,661.7 | 3,260.0 | 3,307.4 |
| Consolidated Operating Data: | |||||
| Capital expenditures(8) | $ 445.9 | $ 779.7 | $ 1,001.9 | $ 1,125.2 | $ 1,035.4 |
| Net cash provided by operating activities | 460.9 | 728.1 | 825.1 | 980.7 | 983.8 |
| Depreciation and amortization(8) | 229.4 | 288.0 | 392.4 | 535.9 | 608.1 |
(1) In October 1995, the Company completed a second public offering, with net proceeds to the Company of
approximately $371.6 million. In December 1994, the Company completed an Initial Public Offering, with net proceeds to the Company of approximately $198.7 million. In 1993, the
Company received a $500 million capital contribution that was effected in two steps, $250 million in May and $250 million in September. The Company also received a $100 million
capital contribution in each of 1988, 1989 and 1991.
(2) Cost of sales is net of certain funds received through government subsidies for industrialization costs (which include certain costs
incurred to bring prototype products to the production stage) included therein. See Note 19 to the Consolidated Financial Statements. For a discussion of certain significant
charges reflected in cost of sales in 1995, 1996 and 1997, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Results of
Operations."
(3) Other income and expenses include, among other things, funds received through government subsidies for research and development expenses,
and the cost of new plant start-ups, as well as foreign currency gains and losses, and the costs of certain activities relating to intellectual property. The Company's reported
research and development expenses do not include design center, process engineering, pre-production or industrialization costs.
(4) In 1994, the Company created a joint venture with a subsidiary of the Shenzhen Electronics Group ("SEG"). The Company owns a 60%
interest in the joint venture, with a subsidiary of SEG owning the remaining 40%. Minority interests also include other minor investments made by the Company.
(5) Earnings per share amounts for 1993 have been restated to reflect a 40:1 stock split effected in connection with the Initial Public
Offering. Earnings per share have been restated to reflect the adoption in 1997 of Statement of Financial Accounting Standard No. 128 "Earnings per Share." See Note
2.15 and Note 12 to the Consolidated Financial Statements.
(6) For purposes of calculating the ratio of earnings to fixed charges, earnings consist of income before income taxes and minority interests,
plus fixed charges. Fixed charges consist of interest expenses.
(7) Working capital is calculated as current assets (excluding cash, cash equivalents and marketable securities) less current liabilities
(excluding bank overdrafts, short term debt and current portion of long-term debt).
(8) Capital expenditures are net of certain funds received through government subsidies, the effect of which is to decrease depreciation.
