UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) | ||||
| [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
| For the quarterly period ended June 30, 2002 | ||||
| OR | ||||
| [ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
| For the transition period from _______________________ to _____________________ | ||||
| Commission file number 000-31511 | ||||
AT ROAD, INC.
(Exact name of registrant as specified in its charter)
| Delaware (State or other jurisdiction of incorporation or organization) |
94-3209170 (I.R.S. Employer Identification No.) |
47200 Bayside Parkway
Fremont, CA 94538
(Address of principal executive offices, including zip code)
510-668-1638
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
As of August 8, 2002 there were 47,106,994 shares of the registrant’s Common Stock outstanding.
INDEX
| PART I. |
FINANCIAL INFORMATION |
|||||||||||
| Item 1. |
Financial Statements | |||||||||||
| Condensed Consolidated Balance Sheets at June 30, 2002 and December 31, 2001 | ||||||||||||
| Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2002 and 2001 | ||||||||||||
| Condensed Consolidated Statements of Stockholders’ Equity and Comprehensive Loss for the six months ended June 30, 2002 and 2001 and the six months ended December 31, 2001 | ||||||||||||
| Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001 | ||||||||||||
| Notes to Condensed Consolidated Financial Statements | ||||||||||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk | |||||||||||
| PART II. |
OTHER INFORMATION |
|||||||||||
| Item 1. |
Legal Proceedings | |||||||||||
| Item 2. |
Changes in Securities and Use of Proceeds | |||||||||||
| Item 4. |
Submission of Matters to a Vote of Security Holders | |||||||||||
| Item 6. |
Exhibits and Reports on Form 8-K | |||||||||||
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
At Road, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value amounts)
(unaudited)
| June 30, | December 31, | |||||||||||
| 2002 | 2001 | |||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 34,943 | $ | 40,164 | ||||||||
Restricted short-term investments |
2,228 | 2,216 | ||||||||||
Accounts receivable, net |
5,073 | 4,781 | ||||||||||
Inventories |
7,727 | 8,396 | ||||||||||
Deferred product costs and other current assets |
9,304 | 9,081 | ||||||||||
Total current assets |
59,275 | 64,638 | ||||||||||
Property and equipment, net |
3,641 | 4,900 | ||||||||||
Deferred product costs, intangibles and other assets |
6,945 | 8,936 | ||||||||||
Total assets |
$ | 69,861 | $ | 78,474 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
$ | 1,436 | $ | 2,377 | ||||||||
Accrued liabilities |
4,480 | 4,837 | ||||||||||
Deferred revenue |
6,636 | 6,124 | ||||||||||
Total current liabilities |
12,552 | 13,338 | ||||||||||
Deferred revenue and other long-term liabilities |
4,276 | 4,725 | ||||||||||
Total liabilities |
16,828 | 18,063 | ||||||||||
Stockholders’ equity: |
||||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
shares issued and outstanding: none at June 30, 2002 and
December 31, 2001 |
— | — | ||||||||||
Common stock, $0.0001 par value, 250,000,000 shares
authorized, shares issued and outstanding: 47,089,918 at
June 30, 2002 and 46,499,451 at December 31, 2001 |
169,332 | 169,148 | ||||||||||
Deferred stock compensation |
(1,127 | ) | (2,342 | ) | ||||||||
Notes receivable from stockholders |
(2,068 | ) | (2,748 | ) | ||||||||
Accumulated deficit |
(113,104 | ) | (103,647 | ) | ||||||||
Total stockholders’ equity |
53,033 | 60,411 | ||||||||||
Total liabilities and stockholders’ equity |
$ | 69,861 | $ | 78,474 | ||||||||
See notes to condensed consolidated financial statements.
3
At Road, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
| Three months ended | Six months ended | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
Revenues: |
||||||||||||||||||||
Service |
$ | 7,957 | $ | 4,544 | $ | 15,208 | $ | 8,267 | ||||||||||||
Product |
2,501 | 1,649 | 4,950 | 3,040 | ||||||||||||||||
Total revenues |
10,458 | 6,193 | 20,158 | 11,307 | ||||||||||||||||
Costs and expenses: |
||||||||||||||||||||
Cost of service revenue |
3,325 | 3,285 | 6,534 | 6,128 | ||||||||||||||||
Cost of product revenue |
3,796 | 2,882 | 7,750 | 5,528 | ||||||||||||||||
Sales and marketing |
2,604 | 4,835 | 5,602 | 9,900 | ||||||||||||||||
Research and development |
1,476 | 2,204 | 3,062 | 4,441 | ||||||||||||||||
General and administrative |
1,879 | 3,177 | 4,715 | 7,007 | ||||||||||||||||
Restructuring charges |
— | 248 | — | 248 | ||||||||||||||||
Intangibles amortization |
414 | 414 | 828 | 828 | ||||||||||||||||
Stock compensation(*) |
376 | 288 | 437 | 1,583 | ||||||||||||||||
Total costs and expenses |
13,870 | 17,333 | 28,928 | 35,663 | ||||||||||||||||
Loss from operations |
(3,412 | ) | (11,140 | ) | (8,770 | ) | (24,356 | ) | ||||||||||||
Other income (expense), net: |
||||||||||||||||||||
Interest income, net |
215 | 775 | 455 | 1,850 | ||||||||||||||||
Investment impairment charge |
(1,035 | ) | — | (1,035 | ) | — | ||||||||||||||
Other income (expense) |
(15 | ) | 14 | (107 | ) | (4 | ) | |||||||||||||
Total other income (expense), net |
(835 | ) | 789 | (687 | ) | 1,846 | ||||||||||||||
Net loss |
$ | (4,247 | ) | $ | (10,351 | ) | $ | (9,457 | ) | $ | (22,510 | ) | ||||||||
Basic and diluted net loss per share |
$ | (0.09 | ) | $ | (0.24 | ) | $ | (0.21 | ) | $ | (0.52 | ) | ||||||||
Shares used in calculating basic and diluted
net loss per share |
45,904 | 43,798 | 45,596 | 43,344 | ||||||||||||||||
(*) |
Stock compensation: | |||||||||||||||||||
Cost of service revenue |
$ | 9 | $ | 18 | $ | 11 | $ | 47 | ||||||||||||
Cost of product revenue |
25 | 49 | 56 | 113 | ||||||||||||||||
Sales and marketing |
(1 | ) | (177 | ) | 16 | 3 | ||||||||||||||
Research and development |
87 | (216 | ) | 191 | (73 | ) | ||||||||||||||
General and administrative |
256 | 614 | 163 | 1,493 | ||||||||||||||||
Total |
$ | 376 | $ | 288 | $ | 437 | $ | 1,583 | ||||||||||||
See notes to condensed consolidated financial statements.
4
At Road, Inc.
Condensed Consolidated Statements of Stockholders’
Equity And Comprehensive Loss
For the six months ended June 30, 2002 and 2001
and the six months ended December 31, 2001
(In thousands, except share amounts)
(unaudited)
| Notes | Accumulated | |||||||||||||||||||||||||||||||
| Common Stock | Deferred | Receivable | Other | Accumu- | Total | |||||||||||||||||||||||||||
| Stock | From | Comprehensive | lated | Stockholders’ | Comprehensive | |||||||||||||||||||||||||||
| Shares | Amount | Compensation | Stockholders | Income (Loss) | Deficit | Equity | Loss | |||||||||||||||||||||||||
BALANCES, January 31, 2001 |
46,071,979 | $ | 171,208 | $ | (8,123 | ) | $ | (3,309 | ) | $ | (10 | ) | $ | (65,000 | ) | $ | 94,766 | |||||||||||||||
Net loss |
(22,510 | ) | (22,510 | ) | $ | (22,510 | ) | |||||||||||||||||||||||||
Change in net unrealized income
(loss) from short-term
investments |
10 | 10 | 10 | |||||||||||||||||||||||||||||
Comprehensive loss |
$ | (22,500 | ) | |||||||||||||||||||||||||||||
Shares issued under employee
stock purchase plan |
173,480 | 317 | 317 | |||||||||||||||||||||||||||||
Exercise of stock options |
174,417 | 128 | (35 | ) | 93 | |||||||||||||||||||||||||||
Common stock issued for
consulting services |
2,250 | 4 | 4 | |||||||||||||||||||||||||||||
Collection of notes receivable
from stockholders |
154 | 154 | ||||||||||||||||||||||||||||||
Repurchase of unvested options
exercised |
(329,583 | ) | (278 | ) | 278 | |||||||||||||||||||||||||||
Deferred stock compensation |
24 | (24 | ) | |||||||||||||||||||||||||||||
Reversal of deferred stock
compensation due to
employee terminations |
(2,466 | ) | 2,466 | |||||||||||||||||||||||||||||
Amortization of deferred stock
compensation |
— | — | 1,583 | — | — | — | 1,583 | |||||||||||||||||||||||||
BALANCES, June 30, 2001 |
46,092,543 | 168,937 | (4,098 | ) | (2,912 | ) | 0 | (87,510 | ) | 74,417 | ||||||||||||||||||||||
Net loss |
(16,137 | ) | (16,137 | ) | $ | (16,137 | ) | |||||||||||||||||||||||||
Change in net unrealized income
(loss) from short-term
investments |
||||||||||||||||||||||||||||||||
Comprehensive loss |
||||||||||||||||||||||||||||||||
Shares issued under the employee
stock purchase plan |
194,099 | 355 | 355 | |||||||||||||||||||||||||||||
Exercise of stock options |
212,809 | 154 | 154 | |||||||||||||||||||||||||||||
Collection of notes receivable
from stockholders |
164 | 164 | ||||||||||||||||||||||||||||||
Repurchase of common stock
through cancellation of notes
receivable |
||||||||||||||||||||||||||||||||
Deferred stock compensation |
61 | (61 | ) | |||||||||||||||||||||||||||||
Reversal of deferred stock
compensation due to employee
terminations |
(359 | ) | 359 | |||||||||||||||||||||||||||||
Amortization of deferred stock
compensation |
— | — | 1,458 | — | — | — | 1,458 | |||||||||||||||||||||||||