Q3 2016 Earnings

Reported September 29, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q3 2016	Q2 2016	Q3 2015	QoQ Change	YoY Change
Revenue	$870M	$836M	—	4.0%	—
Op. Income	-$45M	-$108M	—	57.8%	—
Gross Margin	18.7%	14.6%	—	4.2pp	—
Net Margin	-17.4%	-25.9%	—	8.5pp	—
EPS (Diluted)	$-0.83	$-1.46	—	43.5%	—

Income Statement

Item	Amount
REVENUE	$870M
Cost of Revenue	$707M
GROSS PROFIT	$163M
R&D Expenses	$59M
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$149M
Other Expenses	$0
Operating Expenses	$208M
Cost & Expenses	$915M
OPERATING INCOME	-$45M
Interest Income	$3M
Interest Expense	$75M
Other Income/Expenses	-$102M
INCOME BEFORE TAX	-$148M
Income Tax Expense	$3M
Net Income from Continuing Ops	-$151M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	-$151M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	-$151M
D&A	$10M
EBIT	-$73M
EBITDA	-$63M
EPS	-$1
EPS Diluted	-$1