| Massachusetts |
04-2866152 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification
Number) |
| Page Number | ||||
| Part I FINANCIAL INFORMATION |
||||
| Item 1. |
Financial Statements |
|||
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| Item 2. |
9 | |||
| Item 3. |
28 | |||
| Part II OTHER INFORMATION |
||||
| Item 6. |
28 | |||
| 28 | ||||
| June 29, 2002 |
September 30, 2001 |
|||||||
| ASSETS |
(unaudited) |
|||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
177,519 |
|
$ |
217,369 |
| ||
| Short-term investments |
|
13,509 |
|
|
13,906 |
| ||
| Accounts receivable, net of allowance for doubtful accounts of $5,644 and $5,635 |
|
158,815 |
|
|
185,444 |
| ||
| Other current assets and prepaid expenses |
|
94,973 |
|
|
93,934 |
| ||
| Income taxes |
|
32,073 |
|
|
5,035 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
476,889 |
|
|
515,688 |
| ||
| Marketable investments |
|
12,827 |
|
|
17,823 |
| ||
| Property and equipment, net |
|
91,154 |
|
|
91,501 |
| ||
| Goodwill and other intangible assets, net |
|
65,199 |
|
|
92,838 |
| ||
| Other assets |
|
90,599 |
|
|
79,988 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
736,668 |
|
$ |
797,838 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ |
28,357 |
|
$ |
28,640 |
| ||
| Accrued expenses |
|
49,998 |
|
|
55,016 |
| ||
| Accrued compensation and severance |
|
64,218 |
|
|
68,936 |
| ||
| Deferred revenue |
|
189,526 |
|
|
207,044 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
332,099 |
|
|
359,636 |
| ||
| Other liabilities |
|
44,090 |
|
|
38,500 |
| ||
| Stockholders equity: |
||||||||
| Preferred stock, $0.01 par value; 5,000 shares authorized; none issued |
|
|
|
|
|
| ||
| Common stock, $0.01 par value; 500,000 shares authorized; 276,053 shares issued |
|
2,761 |
|
|
2,761 |
| ||
| Additional paid-in capital |
|
1,644,150 |
|
|
1,643,626 |
| ||
| Treasury stock, at cost, 14,862 and 15,515 shares, respectively |
|
(165,825 |
) |
|
(173,504 |
) | ||
| Accumulated deficit |
|
(1,095,658 |
) |
|
(1,045,096 |
) | ||
| Accumulated other comprehensive loss |
|
(24,949 |
) |
|
(28,085 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
360,479 |
|
|
399,702 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
736,668 |
|
$ |
797,838 |
| ||
| |
|
|
|
|
| |||
| Three months ended |
Nine months ended |
|||||||||||||||
| June 29, 2002 |
June 30, 2001 |
June 29, 2002 |
June 30, 2001 |
|||||||||||||
| Revenue: |
||||||||||||||||
| License |
$ |
56,215 |
|
$ |
86,502 |
|
$ |
177,565 |
|
$ |
295,222 |
| ||||
| Service |
|
126,293 |
|
|
144,165 |
|
|
389,835 |
|
|
417,823 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
182,508 |
|
|
230,667 |
|
|
567,400 |
|
|
713,045 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Costs and expenses: |
||||||||||||||||
| Cost of license revenue |
|
4,197 |
|
|
4,721 |
|
|
12,608 |
|
|
11,666 |
| ||||
| Cost of service revenue |
|
48,615 |
|
|
62,596 |
|
|
152,081 |
|
|
186,785 |
| ||||
| Sales and marketing |
|
83,321 |
|
|
98,881 |
|
|
252,420 |
|
|
284,470 |
| ||||
| Research and development |
|
33,464 |
|
|
38,494 |
|
|
103,725 |
|
|
111,568 |
| ||||
| General and administrative |
|
17,302 |
|
|
16,939 |
|
|
49,505 |
|
|
51,023 |
| ||||
| Amortization of goodwill and other intangible assets |
|
8,820 |
|
|
9,450 |
|
|
27,019 |
|
|
28,401 |
| ||||
| Nonrecurring charges |
|
18,392 |
|
|
3,816 |
|
|
24,481 |
|
|
9,961 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total costs and expenses |
|
214,111 |
|
|
234,897 |
|
|
621,839 |
|
|
683,874 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating income (loss) |
|
(31,603 |
) |
|
(4,230 |
) |
|
(54,439 |
) |
|
29,171 |
| ||||
| Other income (expense), net |
|
(1,230 |
) |
|
448 |
|
|
(1,927 |
) |
|
3,015 |
| ||||
| Write-down of investments |
|
|
|
|
|
|
|
|
|
|
(8,681 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (loss) before income taxes |
|
(32,833 |
) |
|
(3,782 |
) |
|
(56,366 |
) |
|
23,505 |
| ||||
| Provision for (benefit from) income taxes |
|
(8,263 |
) |
|
(1,097 |
) |
|
(13,562 |
) |
|
6,815 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
(24,570 |
) |
$ |
(2,685 |
) |
$ |
(42,804 |
) |
$ |
16,690 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Earnings (loss) per share (Note 3): |
||||||||||||||||
| Basic |
$ |
(0.09 |
) |
$ |
(0.01 |
) |
$ |
(0.16 |
) |
$ |
0.06 |
| ||||
| Diluted |
$ |
(0.09 |
) |
$ |
(0.01 |
) |
$ |
(0.16 |
) |
$ |
0.06 |
| ||||
| Nine months ended |
||||||||
| June 29, 2002 |
June 30, 2001 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income (loss) |
$ |
(42,804 |
) |
$ |
16,690 |
| ||
| Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
||||||||
| Depreciation and amortization |
|
54,688 |
|
|
57,151 |
| ||
| Non-cash portion of nonrecurring charges and write-down of investments |
|
|
|
|
12,731 |
| ||
| Changes in assets and liabilities which provided (used) cash: |
||||||||
| Accounts receivable |
|
26,629 |
|
|
2,945 |
| ||
| Accounts payable and accrued expenses |
|
(8,397 |
) |
|
3,783 |
| ||
| Accrued compensation and severance |
|
(4,718 |
) |
|
1,003 |
| ||
| Deferred revenue |
|
(17,518 |
) |
|
(20,532 |
) | ||
| Income taxes |
|
(30,684 |
) |
|
(2,384 |
) | ||
| Other current assets |
|
481 |
|
|
(12,654 |
) | ||
| Other noncurrent assets and liabilities |
|
(235 |
) |
|
(3,897 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided (used) by operating activities |
|
(22,558 |
) |
|
54,836 |
| ||
| |
|
|
|
|
| |||
| Cash flows from investing activities: |
||||||||
| Additions to property and equipment |
|
(25,953 |
) |
|
(50,689 |
) | ||
| Additions to other intangible assets |
|
(1,412 |
) |
|
(1,661 |
) | ||
| Purchases of investments |
|
(27,335 |
) |
|
(23,174 |
) | ||
| Proceeds from sales and maturities of investments |
|
32,843 |
|
|
51,128 |
| ||
| |
|
|
|
|
| |||
| Net cash used by investing activities |
|
(21,857 |
) |
|
(24,396 |
) | ||
| |
|
|
|
|
| |||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of common stock |
|
4,919 |
|
|
18,711 |
| ||
| Purchases of treasury stock |
|
(4,998 |
) |
|
(111,712 |
) | ||
| |
|
|
|
|
| |||
| Net cash used by financing activities |
|
(79 |
) |
|
(93,001 |
) | ||
| |
|
|
|
|
| |||
| Net effect of exchange rate changes on cash |
|
4,644 |
| |||||