-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JazNEX6ldJRjt/dItNHCnCzEW3mgI70/oVd0CLjVYqUPWkLz2CifXptESzEBXkHo IO9AIInAmLs68tIpB+97ww== 0000950129-03-002215.txt : 20030424 0000950129-03-002215.hdr.sgml : 20030424 20030424121837 ACCESSION NUMBER: 0000950129-03-002215 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030424 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030424 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BMC SOFTWARE INC CENTRAL INDEX KEY: 0000835729 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 742126120 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16393 FILM NUMBER: 03661629 BUSINESS ADDRESS: STREET 1: 2101 CITYWEST BLVD CITY: HOUSTON STATE: TX ZIP: 77042-2827 BUSINESS PHONE: 7139188800 MAIL ADDRESS: STREET 1: 2101 CITYWEST BLVD CITY: HOUSTON STATE: TX ZIP: 77042-2827 8-K 1 h05135e8vk.txt BMC SOFTWARE, INC. - DATED 4/24/2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 24, 2003 BMC SOFTWARE, INC. (Exact Name of Registrant as Specified in Its Charter) DELAWARE 001-16393 74-2126120 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) 2101 CITYWEST BLVD. HOUSTON, TEXAS 77042-2827 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 918-8800 ITEM 7. Financial Statements and Exhibits. (c) The following exhibit is being furnished herewith: 99 News Release, dated April 24, 2003, of BMC Software, Inc. ITEM 9. Regulation FD Disclosure BMC Software, Inc. (the "Company") will hold a conference call on April 24, 2003 to discuss its fiscal fourth quarter results and to provide the following fiscal 2004 guidance. Such guidance is based on management's current expectations or beliefs, and is subject to uncertainty and changes in circumstances. These statements are forward looking, and actual results may differ materially. The Company expects first quarter revenues to be in the range of $320 million to $335 million and earnings per share ("EPS") excluding special items to be in the range of 5 to 10 cents. The Company expects first quarter EPS on a GAAP basis to be in the range of 0 to 5 cents. The difference between these two estimates is that EPS excluding special items excludes an estimated $15.8 million in amortization of intangibles related to various acquisitions completed to date and the related tax effect. The Company expects fiscal 2004 EPS excluding special items to be in the range of 52 to 60 cents. The Company expects fiscal 2004 EPS on a GAAP basis to be in the range of 34 to 42 cents. The difference between these two estimates is that EPS excluding special items excludes an estimated $59.4 million in amortization of intangibles related to various completed acquisitions and the related tax effect. The GAAP EPS outlook above does not include the impact of any charges related to future events such as acquisitions. The Company expects net deferred license revenues for fiscal 2004 to increase by $20 million to $40 million. The Company expects its fiscal 2004 cash flow to be in the range of $400 million to $450 million. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, sales of business assets, and the potential impact of future decisions by management that may result in merger and restructuring charges, as well as the potential impact of any future impairment charges to goodwill or other intangible assets. The Company's statements regarding financial expectations are forward-looking statements. Numerous important factors affect BMC Software's operating results and could cause BMC Software's actual results to differ materially from the results indicated by these statements of expectations, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: 1) uncertainty regarding future economic conditions worldwide may continue to affect the overall demand for software and services and any worsening of significant economies could result in decreased revenues or lower revenue growth rates; 2) BMC Software's revenues and earnings are subject to a number of factors, including the significant percentage of quarterly sales typically closed at the end of each quarter, that make estimation of operating results prior to the end of a quarter extremely uncertain; 3) BMC Software's operating costs and expenses are relatively fixed over the short term; 4) increased competition and pricing pressures could adversely affect BMC Software's earnings; 5) growth in 2 BMC Software's mainframe revenues is dependent on continued demand for significant additional mainframe MIPS capacity; 6) BMC Software's maintenance revenue could decline if maintenance renewal rates decline or if license revenues do not continue to grow; 7) new software products and product strategies may not be timely introduced or successfully adopted; 8) BMC Software's cash flow from operations is and has been volatile and is dependent upon a number of factors described in BMC Software's filings with the SEC; 9) the additional risks and important factors described in BMC Software's quarterly reports on Form 10-Q and in its Annual Report to Stockholders on Form 10-K for the fiscal year ended March 31, 2002 and other filings with the SEC. The following information, furnished under this "Item 9. Regulation FD Disclosure," is intended to be furnished under "Item 12. Disclosure of Results of Operations and Financial Condition" in accordance with SEC Release No. 33-8216. Such information, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. On April 24, 2003, BMC Software, Inc. issued a news release to report its financial results for the quarter and year ended March 31, 2003. The release is furnished as Exhibit 99 hereto. SIGNATURE Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 24, 2003 BMC SOFTWARE, INC. By: /s/ ROBERT H. WHILDEN, JR. --------------------------------- Robert H. Whilden, Jr. Senior Vice President, General Counsel and Secretary 3 EXHIBIT INDEX
Exhibit No. - ----------- 99 News Release, dated April 24, 2003, of BMC Software, Inc.
4 EX-99 3 h05135exv99.txt NEWS RELEASE DATED APRIL 24, 2003 EXHIBIT 99 INVESTOR RELATIONS CONTACT: MEDIA RELATIONS CONTACT: Neil Yekell Arch Currid (713) 918-4233 (713) 918-3236 neil_yekell@bmc.com arch_currid@bmc.com BMC SOFTWARE REPORTS INCREASES IN FOURTH QUARTER EARNINGS AND REVENUES HOUSTON -- (April 24, 2003) -- BMC Software, Inc. [NYSE: BMC] today announced financial results for its fiscal fourth quarter, ended March 31, 2003. BMC Software's net earnings excluding special items for the fourth quarter of fiscal 2003 were $38.9 million, or $0.17 per diluted common share, an increase of $0.05 compared to the fourth quarter of fiscal 2002 and $0.01 over the current analyst consensus of $0.16. Fourth quarter fiscal 2003 net earnings on a GAAP basis were $20.6 million or $0.09 per diluted common share, which compares to a net loss of $1.8 million or $0.01 per diluted common share in the fourth quarter of fiscal 2002. Included in the financial tables is a reconciliation of results excluding special items and GAAP results. "We met our fourth quarter revenue and earnings goals and generated $606 million in operating cash flow for the year, despite the economic uncertainty that continued to affect IT purchases during the quarter. We achieved these results by staying focused on our customers and by competing strongly in the marketplace," said Bob Beauchamp, president and CEO, BMC Software. "As we begin our new fiscal year, BMC will maintain this focus while advancing our recently announced Business Service Management strategy to enable customers to move beyond traditional IT management and allow them to manage their business from both an IT and a business perspective." Total revenues in the fourth fiscal quarter were $380.7 million, an increase of 15 percent compared to the same quarter of fiscal 2002. Total license revenues in the quarter increased to $180.8 million, up 12 percent, compared to the same quarter of fiscal 2002. Maintenance revenues increased to $176.1 million, up 18 percent, compared to the same quarter of fiscal 2002. Professional services revenues were $23.8 million, an increase of 10 percent compared to the same quarter last year. Operating expenses, excluding $24.1 million of special items, were $336.5 million, compared to $302.0 million in the same quarter of fiscal 2002. These results reflect Remedy's operations in the fourth quarter of fiscal 2003. Total revenues for Remedy in the fourth quarter were $49.2 million and expenses were $42.7 million, excluding $12.0 million of amortization of intangibles. The deferred license revenue balance at March 31, 2003 was $218.1 million, an increase of $49.2 million compared to a year ago and a decrease of $6.7 million sequentially. Cash flow from operations in fiscal 2003 was $606 million. Cash and marketable securities at March 31, 2003 were $1.02 billion. BMC continues to have no debt. BMC has continued its Board-authorized stock repurchase program that began in April 2000 by spending $51 million to repurchase 2.9 million shares during the fourth fiscal quarter. Approximately $479 million remains in this program. BMC SOFTWARE REPORTS INCREASES IN FOURTH QUARTER EARNINGS AND REVENUES/PAGE 2 FOURTH QUARTER FISCAL 2003 FINANCIAL HIGHLIGHTS o Cash flow from operations of $226 million in fiscal Q4. o Strong sequential performance in key systems management product lines: o PATROL(R) license revenues grew 15 percent sequentially. o MAINVIEW(R) license revenues grew 23 percent sequentially. o Remedy fourth quarter revenues of $49.2 million exceeded target of $44 million to $47 million. o Cash and marketable securities balance at year-end was $1.02 billion. o Record total deferred revenues balance at year-end of $1.17 billion. BMC Software will host its annual Investor Day event on May 8, 2003 at BMC Software Headquarters in Houston, Texas. Please visit the Investor Day 2003 event website to register: http://investor.bmcevents.com/. A live audio webcast of Investor Day remarks and presentations will be available via the company's website at www.bmc.com/investors for all interested parties. A replay of the webcast will be available within 24 hours and archived on the website for 30 days. A CONFERENCE CALL TO DISCUSS FOURTH QUARTER RESULTS AND TO PROVIDE FISCAL 2004 GUIDANCE IS SCHEDULED FOR TODAY AT 11:00 A.M. CDT. THOSE INTERESTED IN PARTICIPATING MAY CALL (913) 981-5509 AND USE THE PASSCODE BMC. TO ACCESS A REPLAY OF THE CONFERENCE CALL, WHICH WILL BE AVAILABLE FOR ONE WEEK, DIAL (719) 457-0820 AND USE THE PASSCODE BMC. A LIVE WEBCAST OF THE CONFERENCE CALL AND PRESENTATION WILL BE AVAILABLE ON THE COMPANY'S WEBSITE AT www.bmc.com/investors. A REPLAY OF THE WEBCAST WILL BE AVAILABLE WITHIN 24 HOURS AND ARCHIVED ON THE WEBSITE FOR 90 DAYS. NON-GAAP FINANCIAL MEASURES This press release includes financial measures for net earnings, earnings per share (EPS) and operating expenses that exclude certain charges and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). A detailed reconciliation between the GAAP results and non-GAAP results is included with the financial tables accompanying this press release. BMC Software has provided these non-GAAP measures in its press releases reporting historical financial results because the company believes these measures provide a consistent basis for comparison between quarters, which are not influenced by certain non-cash or non-recurring expenses and are therefore useful to investors in helping them understand the financial condition of BMC Software by focusing on the performance of its core operations. Management uses these non-GAAP financial measures internally to evaluate the performance of its various businesses and as a key variable in determining management compensation. These non-GAAP measures should not be considered an alternative to GAAP, and these non-GAAP measures may not be comparable to information provided by other companies. ABOUT BMC SOFTWARE BMC Software, Inc. [NYSE:BMC] is a leader in enterprise management. The company focuses on Assuring Business Availability(R) for its customers by helping them proactively improve service, reduce costs and increase value to their business. BMC Software solutions span enterprise systems, applications, databases and service management. Through its Business Service Management strategy, the company's solutions enable customers to BMC SOFTWARE REPORTS INCREASES IN FOURTH QUARTER EARNINGS AND REVENUES/PAGE 3 have a complete view of their business and IT operations by linking IT resources to business objectives. Founded in 1980, BMC Software has offices worldwide and is a member of the S&P 500, with fiscal year 2003 revenues of approximately $1.3 billion. This news release contains both historical information and forward-looking information. Statements of plans, objectives, strategies and expectations for future operations and results, identified by words such as "believe," "anticipate" and "expect" are forward-looking statements. Numerous important factors affect BMC Software's operating results and could cause BMC Software's actual results to differ materially from the results indicated by this press release or by any other forward-looking statements made by, or on behalf of, BMC Software, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: 1) uncertainty regarding future economic conditions worldwide may continue to affect the overall demand for software and services and any worsening of significant economies could result in decreased revenues or lower revenue growth rates; 2) BMC Software's revenues and earnings are subject to a number of factors, including the significant percentage of quarterly sales typically closed at the end of each quarter, that make estimation of operating results prior to the end of a quarter extremely uncertain; 3) BMC Software's operating costs and expenses are relatively fixed over the short term; 4) increased competition and pricing pressures could adversely affect BMC Software's earnings; 5) growth in BMC Software's mainframe revenues is dependent on continued demand for significant additional mainframe MIPS capacity; 6) BMC Software's maintenance revenue could decline if maintenance renewal rates decline or if license revenues do not continue to grow; 7) new software products and product strategies may not be timely introduced or successfully adopted; 8) BMC Software's cash flow from operations is and has been volatile and is dependent upon a number of factors described in BMC Software's filings with the SEC; 9) the additional risks and important factors described in BMC Software's quarterly reports on Form 10-Q and in its Annual Report to Stockholders on Form 10-K for the fiscal year ended March 31, 2002 and other filings with the SEC. BMC Software undertakes no obligation to update information contained in this release. ### BMC Software, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc. All other trademarks or registered trademarks belong to their respective companies. (C) 2003, BMC Software, Inc. All rights reserved. BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 4 BMC SOFTWARE, INC. AND SUBSIDIARIES STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31, ----------------------- Fiscal Fiscal % 2002 2003 Increase --------- --------- (In millions, except per share data) Revenues: License $ 161.2 $ 180.8 12% Maintenance 149.0 176.1 18% Professional services 21.6 23.8 10% --------- --------- Total revenues 331.8 380.7 15% --------- --------- Selling and marketing expenses 124.7 137.8 11% Research and development expenses 123.2 138.8 13% Cost of professional services 20.6 22.2 8% General and administrative expenses 33.5 37.7 13% Amortization of acquired technology, goodwill & intangibles 41.2 24.1 -42% Merger-related costs and compensation charges 1.2 -- -100% --------- --------- Total operating expenses 344.4 360.6 5% --------- --------- Operating income (loss) (12.6) 20.1 n/m Other income, net 11.4 9.8 -14% --------- --------- Earnings (loss) before income taxes (1.2) 29.9 n/m Income tax provision 0.6 9.3 n/m --------- --------- Net earnings (loss) $ (1.8) $ 20.6 n/m ========= ========= Diluted earnings (loss) per share $ (0.01) $ 0.09 n/m ========= ========= Shares used in computing diluted earnings (loss) per share 242.1 234.0 -3% ========= =========
BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 5 BMC SOFTWARE, INC. AND SUBSIDIARIES STATEMENTS OF OPERATIONS
Years Ended March 31, -------------------------- Fiscal Fiscal % 2002 2003 Increase ---------- ---------- (In millions, except per share data) Revenues: License $ 625.0 $ 605.7 -3% Maintenance 575.8 635.8 10% Professional services 88.1 85.2 -3% ---------- ---------- Total revenues 1,288.9 1,326.7 3% ---------- ---------- Selling and marketing expenses 538.8 499.4 -7% Research and development expenses 479.2 489.9 2% Cost of professional services 95.3 86.8 -9% General and administrative expenses 151.7 150.2 -1% Acquired research and development -- 12.0 n/m Amortization & impairment of acquired technology, goodwill & intangibles 241.8 66.7 -72% Restructuring costs 52.9 (0.1) -100% Merger-related costs and compensation charges 12.8 0.6 -95% ---------- ---------- Total operating expenses 1,572.5 1,305.5 -17% ---------- ---------- Operating income (loss) (283.6) 21.2 n/m Other income, net 53.1 48.1 -9% ---------- ---------- Earnings (loss) before income taxes (230.5) 69.3 n/m Income tax provision (benefit) (46.4) 21.3 n/m ---------- ---------- Net earnings (loss) $ (184.1) $ 48.0 n/m ========== ========== Diluted earnings (loss) per share $ (0.75) $ 0.20 n/m ========== ========== Shares used in computing diluted earnings (loss) per share 245.0 237.9 -3% ========== ==========
BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 6 BMC SOFTWARE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
March 31, March 31, 2002 2003 ---------- ---------- (in millions) Current Assets: Cash and cash equivalents $ 330.0 $ 500.1 (a) Marketable securities 215.8 151.7 (a) Trade accounts receivable, net 182.6 186.4 Trade finance receivables, current 129.9 154.4 Income taxes receivable 70.1 18.0 Other current assets 68.4 87.6 ---------- ---------- Total current assets 996.8 1,098.2 Property and equipment, net 443.0 408.4 Software development costs and related assets, net 211.8 192.7 Long-term marketable securities 557.9 363.5 (a) Long-term finance receivables 176.3 175.9 Acquired technology, goodwill and intangibles, net 183.8 525.6 Other long-term assets 106.6 81.2 ---------- ---------- $ 2,676.2 $ 2,845.5 ========== ========== Current liabilities: Accounts payable and accrued liabilities $ 220.4 $ 277.2 Current portion of deferred revenue 460.2 561.6 ---------- ---------- Total current liabilities 680.6 838.8 Long-term deferred revenue 483.1 607.1 Other long-term liabilities 5.9 16.2 Total stockholders' equity 1,506.6 1,383.4 ---------- ---------- $ 2,676.2 $ 2,845.5 ========== ==========
(a) Total cash and marketable securities are $1,015.3 at March 31, 2003. BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 7 BMC SOFTWARE, INC. AND SUBSIDIARIES STATEMENTS OF CASH FLOWS
Year Ended March 31, ---------------------- Fiscal Fiscal 2002 2003 -------- -------- (In millions) Cash flows from operating activities: Net earnings (loss) $ (184.1) $ 48.0 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Restructuring costs 18.0 (1.9) Acquired research and development and merger-related costs and compensation charges 11.6 12.6 Depreciation and amortization 375.6 248.3 Impairment of acquired technology, goodwill and intangibles 63.3 -- Impairment of technology assets and investments 10.0 5.3 Loss on sale/disposal of property and equipment 0.2 -- Loss on marketable securities 8.8 12.7 Equity in loss of unconsolidated affiliate 0.6 -- Earned portion of restricted stock compensation 2.2 2.6 (Increase)/decrease in income taxes receivable (61.8) 52.1 Decrease in long-term finance receivables 60.0 0.5 (a) Increase in payable to third-party financing institution for financed receivables 3.2 39.3 Net change in receivables, payables, deferred revenue and other components of working capital 275.2 186.1 -------- -------- Net cash provided by operating activities 582.8 605.6 -------- -------- Cash flows from investing activities: Debtor-in-possession financing provided to Peregrine Systems, Inc. -- (53.8) Proceeds from debtor-in-possession financing provided to Peregrine Systems, Inc. -- 53.8 Cash paid for technology acquisitions and other investments, net of cash acquired (19.9) (408.2) Return of capital for cost-basis investments 3.2 0.7 Purchases of marketable securities (134.6) (124.3) Maturities of/proceeds from sales of marketable securities 204.5 394.1 Purchases of property and equipment (64.3) (23.6) Proceeds from sales of property and equipment 6.7 -- Capitalization of software development costs and related assets (104.2) (88.2) -------- -------- Net cash used in investing activities (108.6) (249.5) -------- -------- Cash flows from financing activities: Payments on borrowings (150.0) (1.2) Stock options exercised and other 21.3 26.1 Treasury stock acquired (155.1) (211.6) -------- -------- Net cash used in financing activities (283.8) (186.7) -------- -------- Effect of exchange rate changes on cash (6.4) 0.7 -------- -------- Net change in cash and cash equivalents 184.0 170.1 Cash and cash equivalents, beginning of period 146.0 330.0 -------- -------- Cash and cash equivalents, end of period $ 330.0 $ 500.1 ======== ========
(a) The change in long-term finance receivables was previously reported as a component of cash flows from investing activities. Prior year cash flows have been reclassified to ensure comparability among the periods presented. BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 8 BMC SOFTWARE, INC. AND SUBSIDIARIES SUPPLEMENTAL ANALYSIS OF EFFECT OF SPECIAL ITEMS FOR THE THREE MONTHS ENDED MARCH 31, 2003 (UNAUDITED)
Special Before As Reported Items Special Items ----------- ------------ ------------- (In millions, except per share data) Revenues: License $ 180.8 $ -- $ 180.8 Maintenance 176.1 -- 176.1 Professional services 23.8 -- 23.8 --------- --------- --------- Total revenues 380.7 -- 380.7 --------- --------- --------- Selling and marketing expenses 137.8 -- 137.8 Research and development expenses 138.8 -- 138.8 Cost of professional services 22.2 -- 22.2 General and administrative expenses 37.7 -- 37.7 Amortization of acquired technology & intangibles 24.1 (24.1) -- --------- --------- --------- Total operating expenses 360.6 (24.1) 336.5 --------- --------- --------- Operating income 20.1 24.1 44.2 Other income, net 9.8 -- 9.8 --------- --------- --------- Earnings before income taxes 29.9 24.1 54.0 Income taxes 9.3 5.8 15.1 --------- --------- --------- Net earnings $ 20.6 $ 18.3 $ 38.9 ========= ========= ========= Diluted earnings per share $ 0.09 $ 0.08 $ 0.17 ========= ========= ========= Shares used in computing diluted earnings per share 234.0 234.0 234.0 ========= ========= =========
BMC Software Reports Increases in Fourth Quarter Earnings and Revenues Page 9 BMC SOFTWARE, INC. AND SUBSIDIARIES SUPPLEMENTAL ANALYSIS OF EFFECT OF SPECIAL ITEMS FOR THE YEAR ENDED MARCH 31, 2003 (UNAUDITED)
Special Before As Reported Items Special Items ----------- ----------- ------------- (In millions, except per share data) Revenues: License $ 605.7 $ -- $ 605.7 Maintenance 635.8 -- 635.8 Professional services 85.2 -- 85.2 ---------- ---------- ---------- Total revenues 1,326.7 -- 1,326.7 ---------- ---------- ---------- Selling and marketing expenses 499.4 -- 499.4 Research and development expenses 489.9 -- 489.9 Cost of professional services 86.8 -- 86.8 General and administrative expenses 150.2 -- 150.2 Acquired research and development 12.0 (12.0)(a) -- Amortization of acquired technology & intangibles 66.7 (66.7)(a) -- Restructuring costs (0.1) 0.1 (a) -- Merger-related costs and compensation charges 0.6 (0.6)(a) -- ---------- ---------- ---------- Total operating expenses 1,305.5 (79.2) 1,226.3 ---------- ---------- ---------- Operating income 21.2 79.2 100.4 Other income, net 48.1 6.0 (a) 54.1 ---------- ---------- ---------- Earnings before income taxes 69.3 85.2 154.5 Income taxes 21.3 22.1 43.4 ---------- ---------- ---------- Net earnings $ 48.0 $ 63.1 $ 111.1 ========== ========== ========== Diluted earnings per share $ 0.20 $ 0.27 $ 0.47 ========== ========== ========== Shares used in computing diluted earnings per share 237.9 237.9 237.9 ========== ========== ==========
(a) The net earnings effect of the individual special items is as follows (in millions): Acquired research and development $ (9.5) Amortization of acquired technology & intangibles $ (49.3) Restructuring costs $ -- Merger-related costs and compensation charges $ (0.6) Loss on marketable security $ (3.7)
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