x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE PERIOD ENDED JUNE 30, 2002
|
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| Delaware |
74-2769415 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| Page | ||||
| Item 1. |
||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| Item 2. |
12 | |||
| Item 3. |
35 | |||
| Item 1. |
36 | |||
| Item 2. |
36 | |||
| Item 4. |
36 | |||
| Item 6. |
37 | |||
| 38 | ||||
| June 30, 2002
|
December 31, 2001 | |||||
| (Unaudited) |
||||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ |
224,511 |
$ |
348,916 | ||
| Short-term investments |
|
129,725 |
|
42,716 | ||
| Accounts receivable, net |
|
32,751 |
|
35,477 | ||
| Prepaid expenses and other current assets |
|
5,250 |
|
4,720 | ||
| |
|
|
| |||
| Total current assets |
|
392,237 |
|
431,829 | ||
| Property and equipment, net |
|
34,587 |
|
43,475 | ||
| Investments |
|
19,378 |
|
22,414 | ||
| Goodwill, net |
|
146,830 |
|
144,420 | ||
| Other intangibles, net |
|
1,136 |
|
18,791 | ||
| Other assets |
|
2,538 |
|
2,097 | ||
| |
|
|
| |||
| Total assets |
$ |
596,706 |
$ |
663,026 | ||
| |
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||
| Current liabilities: |
||||||
| Accounts payable and accrued expenses |
$ |
61,031 |
$ |
73,456 | ||
| Deferred revenue |
|
42,878 |
|
46,051 | ||
| Current portion of capital lease obligation |
|
463 |
|
750 | ||
| Other current liabilities |
|
6,277 |
|
5,746 | ||
| |
|
|
| |||
| Total current liabilities |
|
110,649 |
|
126,003 | ||
| Long-term liabilities, less current portion |
|
28,550 |
|
26,722 | ||
| |
|
|
| |||
| Total liabilities |
|
139,199 |
|
152,725 | ||
| Stockholders equity |
|
457,507 |
|
510,301 | ||
| |
|
|
| |||
| Total liabilities and stockholders equity |
$ |
596,706 |
$ |
663,026 | ||
| |
|
|
| |||
| Three Months Ended June
30, |
Six Months Ended June
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Revenue: |
||||||||||||||||
| Product license |
$ |
12,610 |
|
$ |
44,529 |
|
$ |
33,101 |
|
$ |
92,533 |
| ||||
| Services |
|
23,039 |
|
|
39,095 |
|
|
48,927 |
|
|
81,217 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total revenue |
|
35,649 |
|
|
83,624 |
|
|
82,028 |
|
|
173,750 |
| ||||
| Cost of revenue: |
||||||||||||||||
| Product license |
|
486 |
|
|
1,135 |
|
|
1,312 |
|
|
2,612 |
| ||||
| Services (1) |
|
10,945 |
|
|
22,101 |
|
|
24,027 |
|
|
47,455 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total cost of revenue |
|
11,431 |
|
|
23,236 |
|
|
25,339 |
|
|
50,067 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
24,218 |
|
|
60,388 |
|
|
56,689 |
|
|
123,683 |
| ||||
| Operating expenses: |
||||||||||||||||
| Research and development (1) |
|
12,951 |
|
|
16,463 |
|
|
26,900 |
|
|
35,451 |
| ||||
| Sales and marketing (1) |
|
18,787 |
|
|
50,117 |
|
|
47,776 |
|
|
102,789 |
| ||||
| General and administrative (1) |
|
5,234 |
|
|
8,137 |
|
|
11,861 |
|
|
16,072 |
| ||||
| Purchased in-process research and development, acquisition-related and other charges |
|
|
|
|
663 |
|
|
|
|
|
1,341 |
| ||||
| Business restructuring charges |
|
|
|
|
41,536 |
|
|
13,808 |
|
|
90,658 |
| ||||
| Amortization of deferred stock compensation |
|
364 |
|
|
2,705 |
|
|
1,073 |
|
|
6,802 |
| ||||
| Amortization of goodwill and other intangibles |
|
7,612 |
|
|
124,109 |
|
|
15,245 |
|
|
250,974 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Total operating expenses |
|
44,948 |
|
|
243,730 |
|
|
116,663 |
|
|
504,087 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss from operations |
|
(20,730 |
) |
|
(183,342 |
) |
|
(59,974 |
) |
|
(380,404 |
) | ||||
| Other income (expense), net |
|
1,051 |
|
|
848 |
|
|
2,738 |
|
|
(31,652 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Loss before provision for income taxes |
|
(19,679 |
) |
|
(182,494 |
) |
|
(57,236 |
) |
|
(412,056 |
) | ||||
| Provision for income taxes |
|
232 |
|
|
878 |
|
|
622 |
|
|
1,078 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net loss |
$ |
(19,911 |
) |
$ |
(183,372 |
) |
$ |
(57,858 |
) |
$ |
(413,134 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic net loss per common share |
$ |
(0.08 |
) |
$ |
(0.76 |
) |
$ |
(0.23 |
) |
$ |
(1.73 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Shares used in computing basic net loss per common share |
|
248,860 |
|
|
241,224 |
|
|
248,044 |
|
|
238,895 |
| ||||
| Three Months Ended June
30, |
Six Months Ended June
30, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| (1) Excludes amortization of deferred stock compensation as follows: |
||||||||||||||||
| Cost of revenue services |
$ |
48 |
|
$ |
651 |
|
$ |
146 |
|
$ |
1,409 |
| ||||
| Research and development |
|
144 |
|
|
552 |
|
|
310 |
|
|
1,759 |
| ||||
| Sales and marketing |
|
127 |
|
|
1,041 |
|
|
349 |
|
|
2,550 |
| ||||
| General and administrative |
|
45 |
|
|
461 |
|
|
268 |
|
|
1,084 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| $ |
364 |
|
$ |
2,705 |
|
$ |
1,073 |
|
$ |
6,802 |
| |||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Six Months Ended June 30, |
||||||||
| 2002 |
2001 |
|||||||
| Operating activities: |
||||||||
| Net loss |
$ |
(57,858 |
) |
$ |
(413,134 |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation |
|
10,268 |
|
|
10,464 |
| ||
| Noncash compensation expense |
|
1,073 |
|
|
6,802 |
| ||
| Amortization of goodwill and other intangibles |
|
15,245 |
|
|
250,974 |
| ||
| Purchased in-process research and development, acquisition-related and other charges (noncash) |
|
|
|
|
168 |
| ||
| Noncash restructuring expense |
|
803 |
|
|
24,649 |
| ||
| Noncash investment impairments |
|
458 |
|
|
41,397 |
| ||
| Other noncash items |
|
(105 |
) |
|
198 |
| ||
| Changes in operating assets and liabilities, net of effects from purchases of businesses: |
||||||||
| Accounts receivable, net |
|
4,205 |
|
|
34,546 |
| ||
| Prepaid expenses and other assets |
|
(886 |
||||||