Back to GetFilings.com



U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

 

[ x ]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002

[   ]

TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                 to                

Commission File Number 0-16376

TIMBERLINE SOFTWARE CORPORATION
 (Exact name of registrant as specified in its charter)

Oregon
(State or other jurisdiction of incorporation or organization)

93-0748489
(I.R.S. Employer Identification No.)

15195 N.W. Greenbrier Parkway, Beaverton, Oregon 97006-5701
 (Address of principal executive offices) (Zip code)

(503) 690-6775
 (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 [ ]

At November 8, 2002, 11,765,108 common stock of the registrant were outstanding.

 

1

 

TIMBERLINE SOFTWARE CORPORATION
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS

 

Item 1.    Financial Statements
     
 

Condensed consolidated balance sheets,
September 30, 2002, and December 31, 2001 (Unaudited)

3
     
 

Condensed consolidated statements of operations for the three months ended
September 30, 2002 and 2001 (Unaudited).

4
     
 

Condensed consolidated statements of operations for the nine months ended
September 30, 2002 and 2001 (Unaudited)

5
     
 

Condensed consolidated statements of cash flows for the nine months ended
September 30, 2002 and 2001 (Unaudited)

6

Notes to condensed consolidated financial statements (Unaudited)

7
   

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

12
   
Item 3.    Quantitative and Qualitative Disclosures about Market Risk

20
   
Item 4.    Controls and Procedures

21
   

PART II. OTHER INFORMATION

  
     

Item 6.    Exhibits and Reports on Form 8-K

21

SIGNATURES

22

 

2

 

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

 

TIMBERLINE SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(Unaudited) (Amounts in thousands)
    Sep 30
2002		   Dec 31
2001
ASSETS        
Current assets:        
Cash and cash equivalents $ 3,629 $ 5,414
Temporary investments   3,554   4,351
Accounts receivable, less allowance for doubtful accounts
     (Sep 30, 2002, $120; Dec 31, 2001, $131)		   7,103   6,096
Inventories   209   241
Other current assets   2,004   2,054
     Total current assets   16,499   18,156
         
Property and equipment   34,742   32,690
     Less accumulated depreciation and amortization   13,275   11,180
     Property and equipment - net   21,467   21,510
         
Capitalized software costs - net   11,835   10,720
Other assets   734   359
     Total $ 50,535 $ 50,745
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $ 1,485 $ 1,101
Deferred revenues   17,802   16,854
Accrued employee expenses   1,019   1,322
Income taxes payable   37   277
Other current liabilities   1,249   1,703
     Total current liabilities   21,592   21,257
         
Accrued rent expense   479   557
Deferred income taxes   4,377   3,951
Commitments and contingencies        
         
Shareholders' equity:        
Common stock, without par value
     authorized, 20,000 shares; issued - September 30, 2002,
     11,745 shares; December 31, 2001, 11,673 shares		   352   350
Additional paid in capital   5,680   5,378
Accumulated other comprehensive income   32   55
Retained earnings   18,023   19,197
     Total shareholders' equity   24,087   24,980
     Total $ 50,535 $ 50,745
         
See notes to condensed consolidated financial statements.        

 

3

 

TIMBERLINE SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited) (Amounts in thousands, except per share data)
 Three Months Ended September 30,
   

2002

  

2001
Net revenue:        
     Software license fees $ 5,932 $ 5,661
     Service fees   9,563   8,911
     Other   194   185
     Net revenue   15,689   14,757
Cost and expenses:        
     Cost of revenue   1,911   1,468
     Client services   3,395   3,682
     Product development   4,315   4,321
     Sales and marketing   3,548   3,253
     General and administrative   2,109   1,973
     Total cost and expenses   15,278   14,697
Operating income   411   60
Other income   76   109
Income before income taxes   487   169
Provision for income taxes   160   50
Net income $ 327 $ 119
         
Earnings per share:        
     Basic $ 0.03 $ 0.01
     Diluted   0.03   0.01
         
See notes to condensed consolidated financial statements.        

 

4

 

TIMBERLINE SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited) (Amounts in thousands, except per share data)

 Nine Months Ended September 30,
   

2002

  

2001
Net revenue:        
     Software license fees $ 15,031 $ 18,255
     Service fees   28,172   25,204
     Other   938   997
     Net revenue   44,141   44,456
Cost and expenses:        
     Cost of revenue   5,698   4,613
     Client services   9,894   10,747
     Product development   12,349   12,478
     Sales and marketing   10,233   9,764
     General and administrative   5,877   5,592
     Total cost and expenses   44,051   43,194
Operating income   90   1,262
Other income   257   364
Income before income taxes   347   1,626
Provision for income taxes   115   489
Net income $ 232 $ 1,137
         
Earnings per share:        
     Basic $ 0.02 $ 0.10
     Diluted   0.02   0.10
         
See notes to condensed consolidated financial statements.        

 

5

 

TIMBERLINE SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited) (Amounts in thousands)

Nine Months Ended September 30,
  2002  2001 
Cash flow from operating activities:        
Net income $ 232  $ 1,137 
Adjustments to reconcile net income to net cash provided by        
operating activities:        
     Capitalized software cost amortization   1,320    812 
     Depreciation and amortization   2,322    2,164 
     Deferred income taxes   426    1,482 
     Tax benefit on options exercised   107    39 
     Net change in:        
     Accounts receivable   (1,007)   (1,333)
     Inventories   32    11 
     Accounts payable   384    (367)
     Income taxes payable   (240)   (26)
     Deferred revenues   948    928