EX-99.1 2 dex991.htm RECONCILIATION OF NET INCOME(LOSS) TO EBITDA AND ADJUSTED EBITDA - UNAUDITED Reconciliation of Net Income(Loss) to EBITDA and Adjusted EBITDA - Unaudited

Exhibit 99.1

AVAGO TECHNOLOGIES FINANCE PTE. LTD.

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA - UNAUDITED

(IN MILLIONS)

 

     Quarter ended    Year ended
     November 1,
2009
   August 2,
2009
   November 2,
2008
   November 1,
2009
   November 2,
2008

Net income (loss)

     $ (21)       $ 2        $ 18        $ (44)       $ 83  

Interest expense

     19        20        21        77        86  

Provision for (benefit from) income taxes

     (1)       6        (9)       8        3  

Depreciation and amortization expense

     40        40        42        160        159  
                                  

EBITDA

     37        68        72        201        331  

Restructuring and other unusual charges

     60        16        6        98        20  

Purchase accounting adjustments

     -            -            -            -            1  

Share-based compensation

     5        3        3        12        15  

Loss on extinguishment of debt

     9        -            -            8        10  

(Income) loss from and (gain) loss on discontinued operations

     -            -            7        -            (26) 
                                  

Adjusted EBITDA

     $ 111        $ 87        $ 88        $ 319        $ 351  
                                  

EBITDA represents net income (loss) before interest expense, provision for income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to give effect to certain items that are required in calculating covenant compliance under our senior and senior subordinated notes as well as under our senior secured credit facility. Adjusted EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described above. EBITDA and Adjusted EBITDA do not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income (loss) as an indicator of our operating performance.

Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of free cash flow available for management or discretionary use as such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements. EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures.