EX-12.1 2 d619817dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

PMC-SIERRA, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended  
     December 29,
2012

(As Restated)
    December 31,
2011
     December 26,
2010
     December 27,
2009
     December 28,
2008
 

Earnings:

             

Loss (income) before income taxes and before income from equity investees

   $ (282,027   $ 80,883       $ 113,324       $ 51,101       $ 58,280   

Fixed charges:

             

Interest expense and amortization of debt issue costs

   $ 4,469     $ 6,697      $ 5,979      $ 4,828      $ 9,263  

Rental interest factor (1)

     3,714       4,295        3,755        3,594        3,618  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total fixed charges

   $ 8,183      $ 10,992       $ 9,734       $ 8,422       $ 12,881   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

(Loss) earnings available to cover fixed charges

   $ (273,844   $ 91,875      $ 123,058      $ 59,523      $ 71,161  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges (2)

     —          8.4x         12.6x         7.1x         5.5x   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges for the periods indicated. Earnings consist of income (loss) before provision for income taxes less income from equity investees plus fixed charges. Fixed charges consist of interest charges, amortization of debt issuance costs, and that portion of rental expense that the Company believes to be a reasonable approximation of the interest factor included in rental expense.

 

(1) The portion of operating lease rental expense that the Company believes to be a reasonable approximation of the interest factor is deemed to be one-third of total operating lease rental expense.
(2) Earnings were inadequate to cover fixed charges by $273.8 million for fiscal year ended December 29, 2012.