Q2 2016 Earnings

Reported June 29, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$836M	$725M	—	15.3%	—
Op. Income	-$108M	-$124M	—	13.2%	—
Gross Margin	14.6%	5.0%	—	9.6pp	—
Net Margin	-25.9%	-22.5%	—	-3.5pp	—
EPS (Diluted)	$-1.46	$-1.11	—	-31.6%	—

Income Statement

Item	Amount
REVENUE	$836M
Cost of Revenue	$714M
GROSS PROFIT	$122M
R&D Expenses	$61M
Selling & Marketing	$1M
General & Administrative	$167M
SG&A Expenses	$169M
Other Expenses	$0
Operating Expenses	$230M
Cost & Expenses	$944M
OPERATING INCOME	-$108M
Interest Income	$0
Interest Expense	-$110M
Other Income/Expenses	-$110M
INCOME BEFORE TAX	-$218M
Income Tax Expense	-$1M
Net Income from Continuing Ops	-$217M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	-$217M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	-$217M
D&A	-$220M
EBIT	-$328M
EBITDA	-$328M
EPS	-$1
EPS Diluted	-$1