Q1: Sales up 20 percent to $2.28 billion. Net profit $51 million, including $26 million gain from accounting change; down from $78 million a year ago. Company said operating income took an $8 million hit from foreign exchange rates, contributing to 2 percent decline in operating income.
Q2 forecast: Sales expected to grow 16 percent to 24 percent. Operating income expected to fall between 69 percent and 36 percent, to $32 million to $67 million, after taking into account $38 million for stock-based compensation costs and amortization of intangible assets.
FY06 forecast: Net sales expected to be up 17 percent to 24 percent, or $9.95 billion to $10.5 billion. Operating income expected to range from a 10 percent decline to 20 percent growth, or $390 million to $520 million.