footnotes
(1) During fiscal 2004, the Company sold its consolidated subsidiaries, the Vésper Operating Companies, and the Vésper Towers and returned personal mobile service licenses to Anatel, the telecommunications regulatory agency in Brazil. The results of operations, including gains and losses realized on the sales transactions and the licenses, are presented as discontinued operations. As such, revenue and gross margin results presented do not include the results from these discontinued operations.
(2) In the fourth quarter of fiscal 2004, the Company adopted a new method of recording royalties, based solely on reports received from licensees for royalty bearing sales of equipment in the prior quarter. Under the prior method of recording royalties, the Company recorded an estimate of earned royalties for certain licensees in the quarter preceding its receipt of licensee reports. This change was made on a prospective basis in the fourth quarter of fiscal 2004 and as a result, GAAP results for fiscal 2004 reflect only partial economic performance of the Company’s licensing business as royalty revenue that would have been recognized in the fourth quarter of fiscal 2004 was recognized in the first quarter of fiscal 2005.
(3) The Company effected a two-for-one stock split in August 2004. All references to per share amounts have been restated to reflect the stock split.
(4) See “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures”.
(5) Free Cash Flow is calculated as net cash from operating activities less capital expenditures, both of which are presented in the GAAP statement of cash flows.
(6) Free Cash Flow for fiscal years 2002, 2003 and 2004 have been revised to combine cash flows from continuing operations with cash flows from discontinued operations, which resulted from the sale of the Company’s former subsidiaries, the Vésper Operating Companies, and the Vésper Towers and the return of the personal mobile service licenses to Anatel, the telecommunications regulatory agency in Brazil.
* Fiscal 2006 results presented reflect the impact of share based compensation related to our adoption of FAS 123R. Further details are located in our Notes to Consolidated Financial Statements.
** See reconciliation to GAAP amounts.
