Delaware | 1-33403 | 04-6135748 | ||
(State of Incorporation) | (Commission File Number) | (IRS Employer | ||
Identification Number) |
Item 2.02 Results of Operations and Financial Condition. | ||||||||
Item 8.01 Other Events. | ||||||||
Item 9.01 Financial Statements and Exhibits. | ||||||||
SIGNATURES | ||||||||
INDEX TO EXHIBITS | ||||||||
EXHIBIT 99.1 |
| Increased depreciation due to shorter economic life of Hillview facility This represents increased depreciation expense on the Milpitas facility in California after determination that the facility had a shorter economic useful life to Sipex. The Company excludes the depreciation impact of this infrequent event for comparability with other periods. | ||
| Stock-based compensation These expenses primarily consisted of expenses for employee stock options under Statement of Financial Accounting Standards (SFAS) No. 123 (R). The Company excludes stock-based compensation expenses for its non-GAAP measures primarily because they are non-cash expenses that Sipex does not believe are reflective of ongoing operating results. Further, the Company believes that it is useful to investors to understand the impact of the application of SFAS 123(R) to its results of operations. | ||
| Restructuring and other The charges primarily consisted of employee severance costs for the Companys reduction of workforce plan in the fiscal fourth quarter of 2006, stock option compensation expense due to vesting acceleration of stock options held by a terminated senior executive, employee severance and retention costs relating to the closure of its wafer fabrication facility in Milpitas, California and lease costs associated with the unused portion of its Hillview and Billerica facilities. Sipex believes it is useful to exclude restructuring charges in measuring Sipexs results of operations because they are non-recurring costs. | ||
| Impairment of fixed assets In the fiscal second quarter of 2005, Sipex recognized an impairment charge for its long-lived assets. Based on changes in the planned use for its wafer fabrication assets, the Company performed an impairment evaluation in accordance with SFAS No. 144 and determined that the appropriate grouping for this impairment evaluation was the wafer fabrication assets taken together and the associated cash flows for these assets. In the fiscal fourth quarter of 2006, Sipex recognized an additional charge of $12,000 related to the sale of such long-lived assets. The Company excludes the impairment charge as it believes that it is an infrequent event, which makes the operating results less comparable between reporting periods. |
1
Exhibit No. | Description | |
99.1
|
Press release dated May 8, 2007 announcing Sipexs financial results for fiscal first quarter of 2007 |
2
Date: May 8, 2007 | SIPEX CORPORATION |
|||
By: | /s/ Clyde R. Wallin | |||
Name: | Clyde R. Wallin | |||
Title: | Chief Financial Officer and Senior Vice President of Finance |
3