UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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 September 30, 2003
OR
| o | 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.
| 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 o
| Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). | ||
Yes x No o
| As of November 3, 2003 there were 53,559,091 shares of the registrant’s Common Stock outstanding. | ||
INDEX
| PART I. | FINANCIAL INFORMATION | |
| Item 1. Financial Statements. | ||
Condensed Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002. |
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Condensed Consolidated Statements of Operations for the three and nine months ended
September 30, 2003 and 2002. |
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Condensed Consolidated Statements of Stockholders’ Equity for the nine months ended
September 30, 2003 and 2002 and the nine months ended
December 31, 2002. |
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Condensed Consolidated Statements of Cash Flows for the nine months ended September 30,
2003 and 2002. |
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Notes to Condensed Consolidated Financial Statements. |
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| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||
| Item 3. Quantitative and Qualitative Disclosures About Market Risk. | ||
| Item 4. Controls and Procedures. | ||
| PART II. | OTHER INFORMATION | |
| Item 1. Legal Proceedings. | ||
| Item 4. Submission of Matters to a Vote of Security Holders. | ||
| Item 5. Other Information. | ||
| 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)
| September 30, | December 31, | |||||||||||
| 2003 | 2002 | |||||||||||
ASSETS |
||||||||||||
Current assets: |
||||||||||||
Cash and cash equivalents |
$ | 98,395 | $ | 35,659 | ||||||||
Restricted short-term investments |
2,000 | 2,241 | ||||||||||
Accounts receivable, net |
6,848 | 7,407 | ||||||||||
Inventories |
2,330 | 5,399 | ||||||||||
Deferred product costs and other current assets |
12,538 | 9,937 | ||||||||||
Total current assets |
122,111 | 60,643 | ||||||||||
Property and equipment, net |
2,171 | 2,500 | ||||||||||
Deferred product costs, intangibles and other assets |
7,552 | 7,407 | ||||||||||
Total assets |
$ | 131,834 | $ | 70,550 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Current liabilities: |
||||||||||||
Accounts payable |
$ | 2,415 | $ | 3,408 | ||||||||
Accrued liabilities |
5,138 | 3,870 | ||||||||||
Deferred revenue and customer deposits |
9,214 | 7,594 | ||||||||||
Total current liabilities |
16,767 | 14,872 | ||||||||||
Deferred revenue |
6,780 | 5,321 | ||||||||||
Other long-term liabilities |
74 | 190 | ||||||||||
Total liabilities |
23,621 | 20,383 | ||||||||||
Stockholders’ equity: |
||||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares
authorized, shares issued and outstanding: none at
September 30, 2003 and December 31, 2002 |
— | — | ||||||||||
Common stock, $0.0001 par value, 250,000,000 shares
authorized, shares issued and outstanding: 53,219,785 at
September 30, 2003 and 47,747,156 at December 31, 2002 |
226,649 | 170,610 | ||||||||||
Deferred stock compensation |
(30 | ) | (491 | ) | ||||||||
Notes receivable from stockholders |
(87 | ) | (2,068 | ) | ||||||||
Accumulated deficit |
(118,319 | ) | (117,884 | ) | ||||||||
Total stockholders’ equity |
108,213 | 50,167 | ||||||||||
Total liabilities and stockholders’ equity |
$ | 131,834 | $ | 70,550 | ||||||||
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 | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||||||
Revenues: |
||||||||||||||||||||
Service |
$ | 13,113 | $ | 8,657 | $ | 35,851 | $ | 23,865 | ||||||||||||
Product |
3,503 | 2,659 | 10,275 | 7,609 | ||||||||||||||||
Total revenues |
16,616 | 11,316 | 46,126 | 31,474 | ||||||||||||||||
Costs and expenses: |
||||||||||||||||||||
Cost of service revenue (excluding intangibles
amortization included below) |
3,782 | 3,440 | 11,840 | 9,974 | ||||||||||||||||
Cost of product revenue |
5,249 | 4,265 | 15,078 | 12,015 | ||||||||||||||||
Intangibles amortization |
11 | 418 | 445 | 1,246 | ||||||||||||||||
Sales and marketing |
2,907 | 2,433 | 8,344 | 8,035 | ||||||||||||||||
Research and development |
1,386 | 1,476 | 4,019 | 4,538 | ||||||||||||||||
General and administrative |
2,189 | 1,873 | 6,847 | 6,705 | ||||||||||||||||
Stock compensation(*) |
154 | 380 | 441 | 817 | ||||||||||||||||
Total costs and expenses |
15,678 | 14,285 | 47,014 | 43,330 | ||||||||||||||||
Profit (loss) from operations |
938 | (2,969 | ) | (888 | ) | (11,856 | ) | |||||||||||||
Other income (expense), net: |
||||||||||||||||||||
Interest income, net |
151 | 202 | 436 | 656 | ||||||||||||||||
Investment impairment charge |
— | — | — | (1,035 | ) | |||||||||||||||
Other income (expense), net |
6 | 4 | 17 | 15 | ||||||||||||||||
Total other income (expense), net |
157 | 206 | 453 | (364 | ) | |||||||||||||||
Net income (loss) |
$ | 1,095 | $ | (2,763 | ) | $ | (435 | ) | $ | (12,220 | ) | |||||||||
Basic net income (loss) per share: |
||||||||||||||||||||
Basic |
$ | 0.02 | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.27 | ) | |||||||||
Diluted |
$ | 0.02 | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.27 | ) | |||||||||
Shares used in calculating net income (loss) per share: |
||||||||||||||||||||
Basic |
50,689 | 46,355 | 48,821 | 45,849 | ||||||||||||||||
Diluted |
55,813 | 46,355 | 48,821 | 45,849 | ||||||||||||||||
(*)Stock compensation: |
||||||||||||||||||||
Cost of service revenue |
$ | 2 | $ | 7 | $ | 9 | $ | 18 | ||||||||||||
Cost of product revenue |
11 | 25 | 25 | 81 | ||||||||||||||||
Sales and marketing |
13 | 36 | 23 | 52 | ||||||||||||||||
Research and development |
36 | 83 | 86 | 274 | ||||||||||||||||
General and administrative |
92 | 229 | 298 | 392 | ||||||||||||||||
Total |
$ | 154 | $ | 380 | $ | 441 | $ | 817 | ||||||||||||
See notes to condensed consolidated financial statements.
- 4 -
At Road, Inc.
Condensed Consolidated Statements of Stockholders’
Equity
For the nine months ended September 30, 2003 and 2002
and the three months ended December 31, 2002
(In thousands, except share amounts)
(unaudited)
| Accumulated | ||||||||||||||||||||||||||||
| Common Stock | Deferred | Notes Receivable | Other | |||||||||||||||||||||||||
| Stock | From | Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Amount | Compensation | Stockholders | Income (Loss) | Deficit | Equity | ||||||||||||||||||||||
BALANCES, January 1, 2002 |
46,499,451 | $ | 169,148 | $ | (2,342 | ) | $ | (2,748 | ) | $ | — | $ | (103,647 | ) | $ | 60,411 | ||||||||||||
Net loss |
(12,220 | ) | (12,220 | ) | ||||||||||||||||||||||||
Shares issued under
employee stock purchase
plan |
259,725 | 508 | 508 | |||||||||||||||||||||||||
Exercise of stock options |
529,966 | 660 | 660 | |||||||||||||||||||||||||
Collection of notes
receivable from
stockholders |
554 | 554 | ||||||||||||||||||||||||||
Repurchase of unvested
options exercised |
(93,750 | ) | (126 | ) | 126 | — | ||||||||||||||||||||||
Deferred stock compensation |
17 | (17 | ) | — | ||||||||||||||||||||||||
Reversal of deferred stock
compensation due to
employee terminations |
(795 | ) | 795 | — | ||||||||||||||||||||||||
Amortization of deferred
stock compensation |
— | — | 817 | — | — | — | 817 | |||||||||||||||||||||
BALANCES, September 30, 2002 |
47,195,392 | 169,412 | (747 | ) | (2,068 | ) | — | (115,867 | ) | 50,730 | ||||||||||||||||||
Net loss |
(2,017 | ) | (2,017 | ) | ||||||||||||||||||||||||
Shares issued under the
employee stock purchase
plan |
293,676 | 590 | 590 | |||||||||||||||||||||||||
Exercise of stock options |
258,088 | 616 | 616 | |||||||||||||||||||||||||
Deferred stock compensation |
(2 | ) | 2 | — | ||||||||||||||||||||||||
Reversal of deferred stock
compensation due to
employee terminations |
(6 | ) | 6 | — | ||||||||||||||||||||||||
Amortization of deferred
stock compensation |
— | — | 248 | — | — | — | 248 | |||||||||||||||||||||
BALANCES, December 31, 2002 |
47,747,156 | 170,610 | (491 | ) | (2,068 | ) | — | (117,884 | ) | 50,167 | ||||||||||||||||||
Net loss |
(435 | ) | (435 | ) | ||||||||||||||||||||||||
Common stock issued through
second public offering, net
of issuance costs |
4,000,000 | 51,850 | 51,850 | |||||||||||||||||||||||||
Shares issued through
employee
stock purchase plan |
287,545 | 595 | 595 | |||||||||||||||||||||||||
Exercise of stock options |
1,185,084 | 3,614 | 3,614 | |||||||||||||||||||||||||
Collection of notes
receivable from
stockholders |
1,981 | 1,981 | ||||||||||||||||||||||||||
Deferred stock compensation |
5 | (5 | ) | — | ||||||||||||||||||||||||
Reversal of deferred stock
compensation due to
employee terminations |
(25 | ) | 25 | — | ||||||||||||||||||||||||
Amortization of deferred
stock compensation |
— | — | 441 | — | — | — | 441 | |||||||||||||||||||||
BALANCES, September 30, 2003 |
53,219,785 | $ | 226,649 | $ | (30 | ) | $ | (87 | ||||||||||||||||||||