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 PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURTIES EXCHANGE ACT OF 1934 |
For the transition period from
to
. |
| Massachusetts |
04-2664794 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification
Number) |
| 200 Lowder Brook Drive, Suite 1000 Westwood, Massachusetts |
02090 | |
| (Address of principal executive offices) |
(Zip code) |
| PAGE | ||||||
| Part I. Financial Information |
||||||
| Item 1. |
Unaudited Financial Statements |
|||||
| Consolidated Balance Sheets: |
||||||
| 1 | ||||||
| Consolidated Statements of Income: |
||||||
| 2 | ||||||
| Consolidated Statements of Cash Flows: |
||||||
| 4 | ||||||
| 5 | ||||||
| Item 2. |
9 | |||||
| Item 3. |
13 | |||||
| Item 4. |
14 | |||||
| Part II. Other Information |
||||||
| Item 6. |
14 | |||||
| September 30, 2002 |
December 31, 2001 |
|||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and equivalents |
$ |
5,266 |
|
$ |
5,889 |
| ||
| Accounts receivablenet |
|
21,738 |
|
|
16,207 |
| ||
| Inventories |
|
7,184 |
|
|
5,865 |
| ||
| Prepaid expenses and other |
|
921 |
|
|
387 |
| ||
| Prepaid income taxes |
|
|
|
|
141 |
| ||
| Deferred income taxes |
|
2,463 |
|
|
1,942 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
37,572 |
|
|
30,431 |
| ||
| PROPERTY AND EQUIPMENTNet |
|
13,050 |
|
|
12,764 |
| ||
| DEFERRED INCOME TAXES |
|
2,684 |
|
|
2,205 |
| ||
| OTHER ASSETSNet |
|
2,981 |
|
|
2,794 |
| ||
| |
|
|
|
|
| |||
| TOTAL |
$ |
56,287 |
|
$ |
48,194 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Current portion of capital lease obligations |
$ |
1,676 |
|
$ |
1,539 |
| ||
| Accounts payable |
|
11,932 |
|
|
6,689 |
| ||
| Current portion of deferred revenue |
|
4,229 |
|
|
3,086 |
| ||
| Accrued and other liabilities |
|
1,916 |
|
|
1,288 |
| ||
| Customer deposits |
|
1,286 |
|
|
1,635 |
| ||
| Accrued taxes |
|
442 |
|
|
|
| ||
| Accrued compensation |
|
2,240 |
|
|
1,835 |
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
23,721 |
|
|
16,072 |
| ||
| ACCRUED COMPENSATION |
|
785 |
|
|
747 |
| ||
| DEFERRED REVENUE |
|
12,051 |
|
|
10,660 |
| ||
| CAPITAL LEASE OBLIGATIONS |
|
1,360 |
|
|
1,038 |
| ||
| STOCKHOLDERS' EQUITY: |
||||||||
| Common stock$.01 par value; authorized, 35,000,000 shares; issued, 23,330,161 and 22,700,281 shares at September
30, 2002 and December 31, 2001, respectively |
|
233 |
|
|
227 |
| ||
| Additional paid-in capital |
|
62,791 |
|
|
61,530 |
| ||
| Retained earnings |
|
34,048 |
|
|
33,123 |
| ||
| Treasury stock, at cost, 8,663,034 and 7,995,840 shares of common stock at September 30, 2002 and December 31, 2001,
respectively |
|
(78,702 |
) |
|
(75,203 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders' equity |
|
18,370 |
|
|
19,677 |
| ||
| |
|
|
|
|
| |||
| TOTAL |
$ |
56,287 |
|
$ |
48,194 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended |
||||||||
| September 30, 2002 |
September 30, 2001 |
|||||||
| Revenues |
$ |
31,087 |
|
$ |
24,657 |
| ||
| Cost of goods sold: |
||||||||
| Product and installation costs |
|
15,768 |
|
|
12,342 |
| ||
| Systems costs (exclusive of depreciation shown below) |
|
648 |
|
|
351 |
| ||
| |
|
|
|
|
| |||
| Total |
|
16,416 |
|
|
12,693 |
| ||
| Gross margin |
|
14,671 |
|
|
11,964 |
| ||
| |
|
|
|
|
| |||
| Costs and expenses: |
||||||||
| Research and development |
|
674 |
|
|
463 |
| ||
| Sales and marketing |
|
8,762 |
|
|
6,382 |
| ||
| General and administrative |
|
3,318 |
|
|
3,115 |
| ||
| Depreciation and amortization |
|
655 |
|
|
489 |
| ||
| |
|
|
|
|
| |||
| Total |
|
13,409 |
|
|
10,449 |
| ||
| |
|
|
|
|
| |||
| Operating income |
|
1,262 |
|
|
1,515 |
| ||
| |
|
|
|
|
| |||
| Other income (expense): |
||||||||
| Interest income |
|
51 |
|
|
121 |
| ||
| Interest expense |
|
(59 |
) |
|
(68 |
) | ||
| Gain (loss) on sale of fixed assets |
|
37 |
|
|
(33 |
) | ||
| |
|
|
|
|
| |||
| Total |
|
29 |
|
|
20 |
| ||
| |
|
|
|
|
| |||
| Income before provision for income taxes |
|
1,291 |
|
|
1,535 |
| ||
| Provision for income taxes |
|
478 |
|
|
568 |
| ||
| |
|
|
|
|
| |||
| Net income |
$ |
813 |
|
$ |
967 |
| ||
| |
|
|
|
|
| |||
| Earnings per share: |
||||||||
| Basic |
$ |
0.06 |
|
$ |
0.06 |
| ||
| |
|
|
|
|
| |||
| Diluted |
$ |
0.06 |
|
$ |
0.06 |
| ||
| |
|
|
|
|
| |||
| Weighted average shares: |
||||||||
| Basic |
|
14,669,147 |
|
|
15,283,535 |
| ||
| |
|
|
|
|
| |||
| Diluted |
|
14,669,147 |
|
|
15,845,199 |
| ||
| |
|
|
|
|
| |||
| Nine Months Ended |
||||||||
| September 30, 2002 |
September 30, 2001 |
|||||||
| Revenues |
$ |
88,906 |
|
$ |
72,294 |
| ||
| Cost of goods sold: |
||||||||
| Product and installation costs |
|
44,297 |
|
|
36,171 |
| ||
| Systems costs (exclusive of depreciation shown below) |
|
1,729 |
|
|
1,146 |
| ||
| |
|
|
|
|
| |||
| Total |
|
46,026 |
|
|
37,317 |
| ||
| Gross margin |
|
42,880 |
|
|
34,977 |
| ||
| |
|
|
|
|
| |||
| Costs and expenses: |
||||||||
| Research and development |
|
1,529 |
|
|
1,476 |
| ||
| Sales and marketing |
|
27,731 |
|
|
16,397 |
| ||
| General and administrative |
|
10,538 |
|
|
10,652 |
| ||
| Depreciation and amortization |
|
1,673 |
|
|
1,510 |
| ||
| |
|
|
|
|
| |||
| Total |
|
41,471 |
|
|
30,035 |
| ||
| |
|
|
|
|
| |||
| Operating income |
|
1,409 |
|
|
4,942 |
| ||
| |
|
|
|
|
| |||
| Other income (expense): |
||||||||
| Interest income |
|
98 |
|
|
363 |
| ||
| Interest expense |
|
(167 |
) |
|
(203 |
) | ||
| Gain on sale of fixed assets |
|
128 |
|
|
75 |
| ||
| |
|
|
|
|
| |||
| Total |
|
59 |
|
|
235 |
| ||
| |
|
|
|
|
| |||
| Income before provision for income taxes |
|
1,468 |
|
|
5,177 |
| ||
| Provision for income taxes |
|
543 |
|
|
1,915 |
| ||
| |
|
|
|
|
| |||
| Net income |
$ |
925 |
|
$ |
3,262 |
| ||
| |
|
|
|
|
| |||
| Earnings per share: |
||||||||
| Basic |
$ |
0.06 |
|
$ |
0.21 |
| ||
| |
|
|
|
|
| |||
| Diluted |
$ |
0.06 |
|
$ |
0.20 |
| ||
| |
|
|
|
|
| |||
| Weighted average shares: |
||||||||
| Basic |
|
14,691,748 |
||||||