Common use of Gross Profit Clause in Contracts

Gross Profit. Operating expenses: 103,470 -------- 80,605 -------- 53,302 -------- 30,555 -------- 39,837 ------- 34,605 ------- Research and development.................................. 17,281 13,524 11,676 Sales and marketing....................................... 25,032 18,162 13,599 General and administrative................................ 9,275 6,812 4,824 Acquired in-process technology............................ Total operating expenses.......................... Income (loss) from operations............................... -- -------- 51,588 -------- 29,017 14,000 -------- 52,498 -------- (21,943) -- ------- 30,099 ------- 4,506 Interest and other income, net.............................. Income (loss) before income taxes........................... 2,556 -------- 31,573 490 -------- (21,453) 682 ------- 5,188 Provision for income taxes.................................. Net income (loss)........................................... Net income (loss) per share: 7,893 -------- $ 23,680 ======== -- -------- $(21,453)======== 259 ------- $ 4,929 ======= Basic..................................................... Diluted................................................... Weighted average shares: $ 0.84 ======== $ 0.76 ======== $ (0.92) ======== $ (0.92) ======== $ 0.24 ======= $ 0.21 ======= Basic..................................................... Diluted................................................... 28,290 ======== 30,967 ======== 23,244 ======== 23,244 ======== 20,690 ======= 23,046 ======= The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ACCUMULATED COMMON STOCK CAPITAL IN OTHER --------------- EXCESS OF ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE SHARES AMOUNT PAR VALUE DEFICIT INCOME EQUITY INCOME (LOSS) (IN THOUSANDS) Balance at December 31, 1996... 20,322 $20 $ 54,569 $(10,948) $ -- $ 43,641 Net income..................... -- -- -- 4,929 -- 4,929 $ 4,929 Currency translation........... -- -- -- -- 23 23 23 Other comprehensive income..... Issuance of Common Stock under $ 4,952======== option and purchase plans.... 506 1 1,337 -- -- 1,338 Balance at December 31, 1997... 20,828 21 55,906 (6,019) 23 49,931 Net loss....................... -- -- -- (21,453) -- (21,453) $(21,453) Currency translation........... -- -- -- -- (13) (13) (13) Other comprehensive loss....... $(21,466) ======== Issuance of Common Stock under option and purchase plans.... 548 -- 1,614 -- -- 1,614 Acquisition of New Media Communication Ltd............ 2,076 2 13,393 -- -- 13,395 Balance at December 31, 1998... 23,452 23 70,913 (27,472) 10 43,474 Net income..................... -- -- -- 23,680 -- 23,680 $ 23,680 Change in unrealized loss on investments.................. -- -- -- -- (126) (126) (126) Currency translation........... -- -- -- -- 214 214 214 Other comprehensive income..... $ 23,768 ======== Tax benefit from exercise of employee stock options....... -- -- 8,244 -- -- 8,244 Issuance of Common Stock in public offering, net......... 4,100 5 58,231 -- -- 58,236 Issuance of Common Stock under option and purchase plans and warrant exercises............ 2,950 3 11,163 -- -- 11,166 Balance at December 31, 1999... 30,502 $31 $148,551 $ (3,792) $ 98 $144,188 ====== === ======== ======== ===== ======== The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1999 1998 1997 (IN THOUSANDS) Cash flows from operating activities:

Gross Profit. 6,563 ------- 5,516 2,532 ------- 401 Operating costs and expenses: 103,470 -------- 80,605 -------- 53,302 -------- 30,555 -------- 39,837 ------- 34,605 ------- Research and development.................................. 17,281 13,524 11,676 Sales and marketing....................................... 25,032 18,162 13,599 General 3,231 2,631 Selling, general and administrative................................ 9,275 6,812 4,824 Acquired in-process technology............................ ....................... 6,835 3,138 ------- ------- Total operating costs and expenses.......................... Income (loss) ................ 10,066 5,769 Loss from operations............................... -- -------- 51,588 -------- 29,017 14,000 -------- 52,498 -------- ........................................ (21,9434,550) -- ------- 30,099 ------- 4,506 Interest and other income, net.............................. Income (loss5,368) before income taxes........................... 2,556 -------- 31,573 490 -------- (21,453) 682 ------- 5,188 Provision for income taxes.................................. Net Other income (expense)...................................... 1,143 336 ------- ------- Net loss)........................................... Net income (loss) per share: 7,893 -------- $ 23,680 ======== -- -------- .................................................... $(21,453)======== 259 ------- $ 4,929 ======= Basic..................................................... Diluted................................................... Weighted average shares: $ 0.84 ======== $ 0.76 ======== $ (0.92) ======== $ (0.92) ======== $ 0.24 ======= $ 0.21 ======= Basic..................................................... Diluted................................................... 28,290 ======== 30,967 ======== 23,244 ======== 23,244 ======== 20,690 ======= 23,046 ======= The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ACCUMULATED COMMON STOCK CAPITAL IN OTHER --------------- EXCESS OF ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE SHARES AMOUNT PAR VALUE DEFICIT INCOME EQUITY INCOME (LOSS) (IN THOUSANDS) Balance at December 31, 1996... 20,322 $20 $ 54,569 $(10,948) $ -- $ 43,641 Net income..................... -- -- -- 4,929 -- 4,929 $ 4,929 Currency translation........... -- -- -- -- 23 23 23 Other comprehensive income..... Issuance of Common Stock under $ 4,952======== option and purchase plans.... 506 1 1,337 -- -- 1,338 Balance at December 31, 1997... 20,828 21 55,906 (6,019) 23 49,931 Net loss....................... -- -- -- (21,453) -- (21,4533,407) $(21,453) Currency translation........... -- -- -- -- (13) (13) (13) Other comprehensive loss....... $(21,4665,032) ======== Issuance of Common Stock under option and purchase plans.... 548 -- 1,614 -- -- 1,614 Acquisition of New Media Communication Ltd............ 2,076 2 13,393 -- -- 13,395 Balance at December 31, 1998... 23,452 23 70,913 (27,472) 10 43,474 Net income..................... -- -- -- 23,680 -- 23,680 $ 23,680 Change in unrealized loss on investments.................. -- -- -- -- (126) (126) (126) Currency translation........... -- -- -- -- 214 214 214 Other comprehensive income..... $ 23,768 ======== Tax benefit from exercise of employee stock options....... -- -- 8,244 -- -- 8,244 Issuance of Common Stock in public offering, net......... 4,100 5 58,231 -- -- 58,236 Issuance of Common Stock under option and purchase plans and warrant exercises............ 2,950 3 11,163 -- -- 11,166 Balance at December 31, 1999... 30,502 $31 $148,551 $ (3,792) $ 98 $144,188 ====== ======= Basic and diluted net loss per common share................. $ (0.10) $ (0.90) ======= ======= Shares used in computing net loss per common share.......... 35,401 5,574 See accompanying notes to consolidated financial statements. 5 INTUITIVE SURGICAL CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) THREE MONTHS ENDED ---------------------- MARCH 31, MARCH 31, 2001 2000 --------- --------- OPERATING ACTIVITIES: Net loss.................................................... $ (3,407) $(5,032) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation.............................................. 428 385 Amortization of deferred compensation..................... 617 346 Amortization of intangible and other assets............... 194 -- Changes in operating assets and liabilities: Accounts receivable....................................... (3,822) (736) Prepaid expenses.......................................... 99 (437) Inventory................................................. (447) (712) Accounts payable.......................................... (1,588) 733 Accrued compensation and employee benefits................ (1,157) (428) Warranty accrual.......................................... 49 (25) Other accrued liabilities................................. (329) 138 Accrued royalty expense................................... (1,000) -- Deferred revenue.......................................... (1,212) (28) -------- ------- Net cash used in operating activities....................... (11,575) (5,796) INVESTING ACTIVITIES: Acquisition of property and equipment....................... (1,562) (755) Purchase of short-term investments.......................... (10,434) -- Proceeds from sales of short-term investments............... 479 2,000 Proceeds from maturities of short-term investments.......... 13,746 4,562 -------- ------- Net cash provided by investing activities................... 2,229 5,807 FINANCING ACTIVITIES: Proceeds from issuance of preferred stock................... -- 34,756 Proceeds from issuance of common stock...................... 000 00 Xxxxxxxxxx of common stock.................................. (61) (9) Proceeds from notes payable................................. -- 500 Repayment of notes payable.................................. (335) (387) -------- ------- Net cash provided by financing activities................... 359 34,929 -------- ------- Net increase (decrease) in cash and cash equivalents........ (8,987) 34,940 Cash and cash equivalents, beginning of period.............. 22,657 4,106 -------- ------- Cash and cash equivalents, end of period.................... 13,670 39,046 ======== ======== ===== ======== The See accompanying notes are an integral part of these to consolidated financial statements. HARMONIC 6 INTUITIVE SURGICAL, INC. NOTES TO CONSOLIDATED STATEMENT FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. BASIS OF CASH FLOWS YEAR ENDED DECEMBER PRESENTATION In this report, "Intuitive Surgical," "we," "us," and "our" refer to Intuitive Surgical, Inc. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all normal, recurring adjustments considered necessary for a fair presentation have been included. The financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 1999 1998 1997 (IN THOUSANDS) Cash flows from 2000, included in the Annual Report on Form 10-K of Intuitive Surgical, Inc, filed with the Securities and Exchange Commission. The results for the interim period ended March 31, 2001 are not necessarily indicative of the results to be expected for the full year ending December 31, 2001 or future operating activities:periods.

Gross Profit. Operating 1,273,687 ---------- 176,221 951,489 ---------- 129,346 656,631 -------- 93,274 Selling, general and administrative expenses: 103,470 ................................... 123,972 91,405 68,521 Additional stockholder/officer compensation............................... -- -- 2,354 ---------- ---------- -------- 80,605 -------- 53,302 -------- 30,555 -------- 39,837 ------- 34,605 ------- Research and development.................................. 17,281 13,524 11,676 Sales and marketing....................................... 25,032 18,162 13,599 General and administrative................................ 9,275 6,812 4,824 Acquired in-process technology............................ Total operating expenses.......................... Income (loss) from operations............................... -- -------- 51,588 -------- 29,017 14,000 -------- 52,498 -------- .................... 52,249 37,941 22,399 Interest expense............................ (21,9432,086) -- ------- 30,099 ------- 4,506 Interest and other income(1,392) (415) Other, net.............................. .................................. Income before taxes......................... 589 ---------- 50,752 116 ---------- 36,665 565 -------- 22,549 Income taxes................................ Net income................................ (loss19,289) before income taxes........................... 2,556 -------- 31,573 490 -------- (21,453) 682 ------- 5,188 Provision for income taxes.................................. Net income (loss)........................................... Net income (loss) per share: 7,893 -------- ---------- $ 23,680 31,463 ========== -- -------- $(21,453)======== 259 ------- 13,935) ---------- $ 4,929 22,730 ======= Basic..................................................... Diluted................................................... Weighted average shares: $ 0.84 ======== (3,905) -------- $ 0.76 18,644 ======== Earnings per common share: Basic..................................... $ (0.92) 1.31 $ .97 ======== $ (0.92) ======== $ 0.24 ======= $ 0.21 ======= Basic..................................................... Diluted................................................... 28,290 ======== 30,967 ======== 23,244 ======== 23,244 ======== 20,690 ======= 23,046 ======= The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ACCUMULATED COMMON STOCK CAPITAL IN OTHER --------------- EXCESS OF ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE SHARES AMOUNT PAR VALUE DEFICIT INCOME EQUITY INCOME (LOSS) (IN THOUSANDS) Balance at December 31, 1996... 20,322 $20 $ 54,569 $(10,948) $ -- $ 43,641 Net income..................... -- -- -- 4,929 -- 4,929 $ 4,929 Currency translation........... -- -- -- -- 23 23 23 Other comprehensive income..... Issuance of Common Stock under $ 4,952======== option and purchase plans.... 506 1 1,337 -- -- 1,338 Balance at December 31, 1997... 20,828 21 55,906 (6,019) 23 49,931 Net loss....................... -- -- -- (21,453) -- (21,453) $(21,453) Currency translation........... -- -- -- -- (13) (13) (13) Other comprehensive loss....... $(21,466) ======== Issuance of Common Stock under option and purchase plans.... 548 -- 1,614 -- -- 1,614 Acquisition of New Media Communication Ltd............ 2,076 2 13,393 -- -- 13,395 Balance at December 31, 1998... 23,452 23 70,913 (27,472) 10 43,474 Net income..................... -- -- -- 23,680 -- 23,680 $ 23,680 Change in unrealized loss on investments.................. -- -- -- -- (126) (126) (126) Currency translation........... -- -- -- -- 214 214 214 Other comprehensive income..... $ 23,768 ======== Tax benefit from exercise of employee stock options....... -- -- 8,244 -- -- 8,244 Issuance of Common Stock in public offering, net......... 4,100 5 58,231 -- -- 58,236 Issuance of Common Stock under option and purchase plans and warrant exercises............ 2,950 3 11,163 -- -- 11,166 Balance at December 31, 1999... 30,502 $31 $148,551 $ (3,792) $ 98 $144,188 ====== === ======== ========== Diluted................................... $ 1.23 $ .94 ========== ========== The accompanying Pro forma data: Historical income before income taxes..... $ 22,549 Pro forma income taxes.................... (8,721) -------- Pro forma net income...................... $ 13,828 ======== Pro forma basic net income per share...... $ .61 ======== Pro forma diluted net income per share.... $ .59 ======== See notes are an integral part of these to consolidated financial statements. HARMONIC PC CONNECTION, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER CHANGES IN STOCKHOLDERS' EQUITY (amounts in thousands) Common Stock Additional ------------- Paid-In Retained Shares Amount Capital Earnings Total ------ ------ ---------- -------- -------- Balance, December 31, 1999 1998 1997 1997....... 17,699 $177 $ 4,038 $ 19,905 $ 24,120 Net proceeds from initial public offering........................ 5,391 54 57,199 -- 57,253 Dividend......................... -- -- (IN THOUSANDS7,196) Cash flows from operating activities:(25,841) (33,037) Exercise of stock options, including income tax benefits... 318 3 1,396 -- 1,399 Compensation under nonstatutory stock option agreements......... -- -- 1,297 -- 1,297

Gross Profit. Operating expenses: 103,470 -------- 80,605 -------- 53,302 -------- 30,555 -------- 39,837 ------- 34,605 ------- 264,054 ------------ 14,477,408 -- ------------ 12,630,881 -- ----------- 6,802,754 General and administrative expense................... 5,181,299 4,146,564 2,317,021 Sales and marketing expense.......................... 3,185,340 2,448,505 1,721,606 Research and development.................................. 17,281 13,524 11,676 Sales and marketing....................................... 25,032 18,162 13,599 General and administrative................................ 9,275 6,812 4,824 Acquired in-process technology............................ Total operating expenses.......................... Income ............................. 1,532,896 1,187,584 324,792 Stock compensation expense (note 14)................. 14,411,245 3,283,164 -- Amortization of goodwill (note 3).................... 604,191 ------------ 368,235 ------------ 27,661 ----------- Operating (loss) from operations............................... -- -------- 51,588 -------- 29,017 14,000 -------- 52,498 -------- income............................ (21,94310,437,563) -- ------- 30,099 ------- 4,506 Interest and other 1,196,829 2,411,674 Other (expense) income, net.............................. Income : ------------ ------------ ----------- Foreign currency (loss) gain....................... (324,153) (47,982) 21,418 Common stock warrant interest expense (note 9)..... (36,884,915) (29,694,019) (1,379,460) Interest expense................................... (916,210) (679,122) (221,932) Interest income.................................... 159,849 22,767 12,567 Amortization of deferred financing costs........... (152,683) (63,442) -- Other.............................................. Other expense, net............................... (Loss) income before income taxes........................... 2,556 -------- 31,573 490 -------- ................ 45,291 ------------ (21,45338,072,821) 682 ------- 5,188 Provision for income taxes.................................. ------------ (48,510,384) (17,468) ------------ (30,479,266) ------------ (29,282,437) 10,067 ----------- (1,557,340)----------- 854,334 Income taxes (note 13)............................... Net income (loss)........................................... Net income (loss) income................................ 1,359,401 ------------ (49,869,785) 137,480 ------------ (29,419,917) 783,192 ----------- 71,142 Preferred stock dividends............................ (136,151) (156,586) (121,666) Net (loss) available to common shareholders.......... (Loss) per share: 7,893 -------- $ 23,680 share (note 16): ------------ $(50,005,936) ============ -- -------- ------------ ----------- $(21,453)======== 259 ------- $ 4,929 ======= Basic..................................................... Diluted................................................... Weighted average shares: $ 0.84 ======== $ 0.76 ======== 29,576,503) $ (0.9250,524) ======== $ (0.92) ======== $ 0.24 ======= $ 0.21 ======= Basic..................................................... Diluted................................................... 28,290 ======== 30,967 ======== 23,244 ======== 23,244 ======== 20,690 ======= 23,046 ======= The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ACCUMULATED COMMON STOCK CAPITAL IN OTHER --------------- EXCESS OF ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE SHARES AMOUNT PAR VALUE DEFICIT INCOME EQUITY INCOME (LOSS) (IN THOUSANDS) Balance at December 31, 1996... 20,322 $20 $ 54,569 $(10,948) $ -- $ 43,641 Net income..................... -- -- -- 4,929 -- 4,929 $ 4,929 Currency translation........... -- -- -- -- 23 23 23 Other comprehensive income..... Issuance of Common Stock under $ 4,952======== option and purchase plans.... 506 1 1,337 -- -- 1,338 Balance at December 31, 1997... 20,828 21 55,906 (6,019) 23 49,931 Net loss....................... -- -- -- (21,453) -- (21,453) $(21,453) Currency translation........... -- -- -- -- (13) (13) (13) Other comprehensive loss....... $(21,466) ======== Issuance of Common Stock under option and purchase plans.... 548 -- 1,614 -- -- 1,614 Acquisition of New Media Communication Ltd............ 2,076 2 13,393 -- -- 13,395 Balance at December 31, 1998... 23,452 23 70,913 (27,472) 10 43,474 Net income..................... -- -- -- 23,680 -- 23,680 $ 23,680 Change in unrealized loss on investments.................. -- -- -- -- (126) (126) (126) Currency translation........... -- -- -- -- 214 214 214 Other comprehensive income..... $ 23,768 ======== Tax benefit from exercise of employee stock options....... -- -- 8,244 -- -- 8,244 Issuance of Common Stock in public offering, net......... 4,100 5 58,231 -- -- 58,236 Issuance of Common Stock under option and purchase plans and warrant exercises............ 2,950 3 11,163 -- -- 11,166 Balance at December 31, 1999... 30,502 $31 $148,551 $ (3,792) $ 98 $144,188 ====== === ======== =========== Basic.............................................. $ (6.25) $ (5.28) $ (0.01) ============ ============ The =========== Diluted............................................ $ (6.25) $ (5.28) $ (0.01) ============ ============ =========== Weighted average common shares: Basic.............................................. 8,005,386 5,598,626 5,598,626 ============ ============ =========== Diluted............................................ 8,005,386 5,598,626 5,598,626 ============ ============ =========== See accompanying notes are an integral part of these to consolidated financial statements. HARMONIC 38 HARVARD BIOSCIENCE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER STOCKHOLDERS' EQUITY (DEFICIT) AND COMPREHENSIVE INCOME (LOSS) ADDITIONAL ADDITIONAL ACCUMULATED PAID-IN PAID-IN RETAINED OTHER CAPITAL-- CAPITAL-- EARNINGS COMMON COMPREHENSIVE STOCK COMMON (ACCUMULATED NOTES TREASURY STOCK LOSS OPTIONS STOCK DEFICIT) RECEIVABLE STOCK ----------- -------------- ----------- ------------ ------------ ----------- --------- Balance at December 31, 1999 1998 1997 1997..................... 102,604 (IN THOUSANDS26,261) Cash flows from operating activities:-- -- 1,327,922 -- (667,745) Preferred stock dividends.............. -- -- -- -- (121,666) -- -- Comprehensive income (loss): Net income............. -- -- -- -- 71,142 -- -- Translation

Gross Profit. Operating expenses: 103,470 -------- 80,605 -------- 53,302 -------- 30,555 -------- 39,837 ------- 34,605 ------- Research and development.................................. 17,281 13,524 11,676 Sales and marketing....................................... 25,032 18,162 13,599 General and administrative................................ 9,275 6,812 4,824 Acquired in-process technology............................ Total operating expenses.......................... Income (loss) from operations............................... -- -------- 51,588 -------- 29,017 14,000 -------- 52,498 -------- (21,943) -- ------- 30,099 ------- 4,506 Interest and other income, net.............................. Income (loss) before income taxes........................... 2,556 -------- 31,573 490 -------- (21,453) 682 ------- 5,188 Provision for income taxes.................................. Net income (loss)........................................... Net income (loss) per share: 7,893 -------- $ 23,680 ======== -- -------- $(21,453)======== 21,453) ======== 259 ------- $ 4,929 ======= Basic..................................................... Diluted................................................... Weighted average shares: $ 0.84 ======== $ 0.76 ======== $ (0.92) ======== $ (0.92) ======== $ 0.24 ======= $ 0.21 ======= Basic..................................................... Diluted................................................... 28,290 ======== 30,967 ======== 23,244 ======== 23,244 ======== 20,690 ======= 23,046 ======= The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY ACCUMULATED COMMON STOCK CAPITAL IN OTHER --------------- EXCESS OF ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE SHARES AMOUNT PAR VALUE DEFICIT INCOME EQUITY INCOME (LOSS) (IN THOUSANDS) Balance at December 31, 1996... 20,322 $20 $ 54,569 $(10,948) $ -- $ 43,641 Net income..................... -- -- -- 4,929 -- 4,929 $ 4,929 Currency translation........... -- -- -- -- 23 23 23 Other comprehensive income..... Issuance of Common Stock under $ 4,952======== option and purchase plans.... 506 1 1,337 -- -- 1,338 Balance at December 31, 1997... 20,828 21 55,906 (6,019) 23 49,931 Net loss....................... -- -- -- (21,453) -- (21,453) $(21,453) Currency translation........... -- -- -- -- (13) (13) (13) Other comprehensive loss....... $(21,466) ======== Issuance of Common Stock under option and purchase plans.... 548 -- 1,614 -- -- 1,614 Acquisition of New Media Communication Ltd............ 2,076 2 13,393 -- -- 13,395 Balance at December 31, 1998... 23,452 23 70,913 (27,472) 10 43,474 Net income..................... -- -- -- 23,680 -- 23,680 $ 23,680 Change in unrealized loss on investments.................. -- -- -- -- (126) (126) (126) Currency translation........... -- -- -- -- 214 214 214 Other comprehensive income..... $ 23,768 ======== Tax benefit from exercise of employee stock options....... -- -- 8,244 -- -- 8,244 Issuance of Common Stock in public offering, net......... 4,100 5 58,231 -- -- 58,236 Issuance of Common Stock under option and purchase plans and warrant exercises............ 2,950 3 11,163 -- -- 11,166 Balance at December 31, 1999... 30,502 $31 $148,551 $ (3,792) $ 98 $144,188 ====== === ======== ======== ===== ======== The accompanying notes are an integral part of these consolidated financial statements. HARMONIC INC. CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 1999 1998 1997 (IN THOUSANDS) Cash flows from operating activities:43,641