ITEM 6. SELECTED FINANCIAL DATA The following selected consolidated financial data should be read in conjunction with €œManagement€™s Discussion and Analysis of Financial Condition and Results of Operations€쳌 and our audited consolidated financial statements and the accompanying notes included elsewhere in this filing. The consolidated statements of operations data for the fiscal years ended September 24, 2004, September 30, 2005 and September 29, 2006 and the balance sheet data as of September 30, 2005 and September 29, 2006 were derived from our audited consolidated financial statements that are included elsewhere in this filing. The historical results presented below are not necessarily indicative of financial results to be achieved in future periods. All fiscal years presented consisted of 52 weeks with the exception of fiscal 2005 which consisted of 53 weeks. Fiscal Year Ended September 27, 2002 September 26,2003 September 24,2004 September 30,2005 September 29, 2006 (in thousands, except per share amounts) Revenue: Licensing ................................. $106,640 $157,922 $211,395 $246,298 $301,663 Product sales .............................. 41,377 44,403 57,981 60,021 65,413 Production services ......................... 13,851 15,147 19,665 21,648 24,466 Total revenue .......................... 161,868 217,472 289,041 327,967 391,542 Cost of revenue: Cost of licensing ........................... 25,063 40,001 53,838 40,558 26,887 Cost of product sales (1) ..................... 26,694 26,684 30,043 31,181 38,487 Cost of production services (1) ................ 5,960 6,958 7,624 8,479 10,668 Total cost of revenue .................... 57,717 73,643 91,505 80,218 76,042 Gross margin ................................. 104,151 143,829 197,536 247,749 315,500 Operating expenses: Selling, general and administrative (1) .......... 64,269 76,590 106,456 135,155 154,165 Research and development (1) ................. 15,128 18,262 23,479 30,532 35,377 In-process research and development ........... €” 1,310 1,738 €” €” Loss on litigation ........................... 24,205 €” €” €” €” Gain on settlements ......................... €” €” (2,000) (2,000) (3,625) Total operating expenses ................. 103,602 96,162 129,673 163,687 185,917 Operating income .............................. 549 47,667 67,863 84,062 129,583 Other income (loss), net .......................... (747) (57) 229 7,156 17,054 Income before provision for income taxes and controlling interest ............................ (198) 47,610 68,092 91,218 146,637 Provision for income taxes ....................... 11 16,079 27,321 37,330 55,833 Income before controlling interest .................. (209) 31,531 40,771 53,888 90,804 Controlling interest in net income, net of tax ......... 104 (562) (929) (1,595) (1,255) Net income (loss) .............................. $ (105) $ 30,969 $ 39,842 $ 52,293 $ 89,549 Basic earnings (loss) per share ..................... $ 0.00 $ 0.36 $ 0.47 $ 0.54 $ 0.85 Diluted earnings (loss) per share ................... $ 0.00 $ 0.36 $ 0.43 $ 0.50 $ 0.80 Weighted-average shares outstanding (basic) ......... 85,008 85,009 85,556 96,969 105,688 Weighted-average shares outstanding (diluted) ........ 85,008 86,084 92,783 104,220 111,658 __________ (1) Stock-based compensation included above was as follows: Cost of product sales ........................ €” €” $ 104 $ 222 $ 800 Cost of production services ................... €” €” 36 103 513 Selling, general and administrative ............. €” €” 5,843 11,709 15,087 Research and development ................... €” €” 810 2,150 2,738 Total stock-based compensation ........... €” €” $ 6,793 $ 14,184 $ 19,138 September 27, 2002 September 26,2003 September 24,2004 September 30,2005 September 29, 2006 (in thousands) Cash and cash equivalents ........................ $ 37,394 $ 61,922 $ 78,711 $372,403 $412,487 Working capital ................................ 35,854 54,213 80,281 381,394 479,778 Short-term and long-term investments ............... €” €” €” €” 106,121 Total assets .................................... 157,313 202,707 261,866 586,277 739,288 Long-term debt ................................ 15,406 14,548 13,580 12,124 10,893 Total stockholders€™ equity ........................ 61,742 93,775 143,327 461,139 594,288 40

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