GlobespanVirata, was created as a result of the merger between GlobeSpan and the Virata Corporation. The merger was approved by the shareholders of both companies and closed on December 14, 2001. The results of GlobespanVirata for the fourth quarter and year ended December 31, 2001 include the results of Virata, Inc. from December 15, 2001 through December 31, 2001.
GlobespanVirata reported net revenues of $55,421,000 for the fourth quarter of 2001, a decrease of 58% from the fourth quarter of 2000, and a sequential increase of 20% from net revenues of $46,014,000 for the third quarter of 2001.
Pro forma net loss and pro forma diluted loss per share were $1,094,000 and $0.01, respectively, during the fourth quarter of 2001, compared to pro forma net income and pro forma diluted earnings per share of $15,651,000 and $0.20, respectively, during the fourth quarter of 2000, and pro forma net loss and pro forma diluted loss per share of $3,332,000 and $0.04, respectively, in the third quarter of 2001.
GlobespanVirata reported net revenues of $269,936,000 for the year ended, a decrease of 23% from the year ended 2000. Pro forma net income and pro forma diluted earnings per share were $5,209,000 and $0.06, respectively, for the year ended 2001 compared to pro forma net income and pro forma diluted earnings per share of $38,936,000 and $0.53, respectively, for the year ended 2000.
GlobespanVirata reports net income (loss) and diluted earnings (loss) per share on a pro forma basis, which excludes the effects of non-cash acquisition charges, restructuring and other charges, provisions for excess and obsolete inventory of $43,885,000 and $92,852,000 for the fourth quarter and year ended 2001, respectively, and certain other non-cash expenses, and includes incomes taxes at a pro forma effective tax rate of 40% and assumes the conversion of the $130,000,000 of convertible subordinated notes for all periods presented.
The provision for obsolete inventory of $43,885,000 recorded in the fourth quarter was primarily the result of planned acceleration of convergence of functionalities in next generation products that resulted from the merger with the Virata Corporation. In connection with its merger with the Virata Corporation, the Company completed a restructuring plan during February 2002 and expects to record restructuring and other charges of approximately $25,000,000 to $40,000,000 during the first quarter of 2002.
We are pleased to have expedited the closing of our strategic merger with the Virata Corporation during our fourth quarter. We are also pleased with our results for the fourth quarter and the year 2001 in these challenging times, stated Armando Geday, Chief Executive Officer of GlobespanVirata. With our merger with Virata, we believe we are a stronger, focused company, well positioned to continue to provide our more than 300 customers high quality system solutions for broadband communication applications, added Geday.
